Russia has seen a rise in interest in cryptocurrency, even amongst non-qualified investors. Recent estimates suggest that Russians have invested more than $67 million in the cryptocurrency market. This year, its capitalization has increased dramatically.
Russians Spend 5 Trillion Rubles On Crypto
Russians have spent over $67.5 million on national fiat to convert 5 trillion into cryptocurrencies. This was revealed by a top-ranking State Duma member without giving a timeline. Anatoly Aksakov, the head of Russia’s Financial Market Committee stated this Monday during hearings in the Russian lower house.
Some reports claim that 5 trillion rubles has been already invested in crypto by Russians.
Bitcoin and the like are yet to be comprehensively regulated in Russia, where the law “On Digital Financial Assets,” which entered into force earlier this year, introduced some rules for only a few related activities — coin issuance, for example — but key areas such as mining and taxation remain outside the scope of Russian legislation.
Aksakov stated that crypto markets have attracted investors from all walks of life, even ordinary Russians. According to the Tass news agency he also stated that it was time for Moscow authorities to make a decision in this regard. He elaborated:
This is where it becomes crucial to decide how to treat the phenomenon.
Reports in media have revealed that Russian government agencies have divergent views about how to regulate cryptocurrency. Interfax quoted Aksakov as saying last week that a variety of approaches are being considered and weigh. They include imposing a blanket ban or legalizing cryptocurrency investment and trade.
Citing sources close to the Central Bank of Russia (CBR), Reuters revealed that the monetary authority is considering the prohibition of crypto purchases while its current position is one of “complete rejection.” At a press conference, Governor Elvira Nabiullina reiterated the regulator’s skeptical attitude towards cryptocurrencies and insisted that Russia’s financial infrastructure should not be used to facilitate crypto transactions.
Others have expressed opinions as well. Alexey Moiseev (Deputy Finance Minister) stated that Russia isn’t going to follow China in banning its citizens buying cryptocurrency in foreign currencies or keeping it safe in offshore-based crypto wallets.
According to the Bank of Russia’s recently released Financial Stability Overview Q2-2021, the volume of cryptocurrency transactions by Russians is approximately $5 billion annually. In its analysis, the monetary authority warned that cryptocurrency operations carry risks for the country’s financial stability and investors.
Are you concerned about how upcoming regulations might affect the behaviour of Russian crypto-investors? Leave a comment below.
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