Recent data shows that daily cryptocurrency transactions in Russia have surged to approximately $647 million, according to statements made by the deputy finance minister. This impressive figure suggests a yearly turnover exceeding $129 billion, most of which remains unregulated, operating outside formal oversight.
In response to these developments, the Bank of Russia is proposing a new framework aimed at legalizing cryptocurrency transactions via established exchanges and brokers. These regulations are anticipated to be introduced during the spring session of the State Duma, with lawmakers planning to present a draft bill by March and seeking approval by July 1. The goal is to bring exchanges under the watchful eye of regulatory bodies.
The acceleration in the adoption of digital assets in Russia can be attributed to the impact of Western sanctions imposed after the 2022 invasion of Ukraine, which limited access to traditional financial systems. As a result, Russia has emerged as Europe’s largest cryptocurrency market in terms of transaction volume, as reported by Chainalysis.
Under the proposed regulations, Bitcoin and stablecoins that are pegged to fiat currencies would be classified as currency assets. This classification would enable licensed financial institutions to provide a suite of services related to these digital assets, while imposing penalties on those who operate without a license.