According to a recent report by a Russian lawmaker, the country’s citizens have invested more than 5,000 billion rubles ($ 67.5 billion) in the crypto market, but the regulatory terrain remains hostile and unclear, the governor of Central Bank of Russia increasingly hinting at a regulated environment
Cryptocurrencies have had legal status in Russia since 2020, although it is prohibited to use them as a means of payment in the country. Authorities, however, have expressed opposing views claiming that they could be a tool for money laundering and possibly used to finance terrorism. The law “on digital financial assets” entered into force this year and regulated some activities.
Despite recent warnings about a possible ban, the Russian crypto market has seen remarkable growth. The head of the financial markets committee, Anatoly Aksakov, told hearings in the lower house of the Russian parliament that residents have invested more than $ 67.5 billion in crypto, although he did not specify. delay, state agency Tass reported.
According to some reports, 5,000 billion rubles have already been invested by the Russians in cryptocurrency
This Russian crypto boom could see big hurdles in the near future.
Aksakov befriended several types of investors, including Common Russian, who are now interested in the crypto market. He said: “It is necessary to determine how we deal with this phenomenon and, accordingly, to prescribe responsibilities in law, if we prohibit or restrict something. “
Authorities have warned and taken some action against what they see as high-risk investments for low-financial-literate residents drawn to the crypto market.
However, there is not enough regulatory clarity for Russian crypto investors at the moment and authorities have sent mixed signals regarding future legal actions.
Central Bank of Russia (CBR) Vice President Vladimir Chistyukhin recently announced that they are preparing an advisory report in which regulators will begin providing more clarity by explaining the bank’s position on how cryptocurrencies should play a role in the Russian financial market.
I think we’ll be releasing a report on cryptocurrencies soon. This report will contain our approaches related to the place we see for cryptocurrency in the Russian financial market. I give a hint – we don’t see a place for cryptocurrency in the Russian financial market.
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Russian authorities at the top of crypto
Elvira Nabiullina, the governor of the Central Bank of Russia (CBR), is showing a conservative and skeptical point of view in the face of the rise of cryptocurrencies. She hinted at a ban and recently noted that CBR is capable of enforcing restrictions. The local information portal finmarket.ru quoted:
Cryptocurrencies carry great risks for retail investors due to their high volatility and use in illegal activities, so we cannot accommodate investments in such assets.
Related reading | To ban or not to ban? Russia worries about growth in crypto transactions
The bank chief said the regulator does not see the possibility of legalizing cryptocurrencies on the country’s stock exchanges, but they are studying its other uses.
Previously, Russian Economic Development Minister Maxim Oreshkin compared bitcoin investing to gambling and warned that cryptocurrencies carry a lot of risks for his investors.
As for bitcoin: if you look at how the value of this asset fluctuates, it’s tens of percentage points up, tens of percentage points down. A normal asset that can make money for eligible investors should not have such characteristics, as it is worse than a casino,
From the perspective of Russia’s finance ministry, the country should only allow “eligible investors” to transact bitcoin on exchanges.
Central Bank Vice President Vladimir Chistyukhin said that a solution to their fears would be to ban the transfer of funds from bank accounts to crypto exchanges:
I think we will solve the problem by amending the law. There will be a more precise definition of how cryptocurrencies can flow,