Key Takeaways:
- According to the assessment, Russians control $215 billion in crypto assets, accounting for 12% of the world market’s total value.
- The Russian government expects that regulating Bitcoin and cryptocurrency will bring in $2 billion a year.
Estimates are expected to be cautious due to the lack of clarity in the country’s crypto legislation. However, the Russian Kremlin estimates that regulating Bitcoin and cryptocurrency will generate $2 Billion in annual revenue.
The figures are presently being used to acquire an idea of the scale of the country’s cryptocurrency sector and draft new rules, according to individuals close to the administration and the Kremlin. The proposals, however, have not yet been formalized.
Given the absence of regulatory certainty in the country, the $214 billion estimates may be low, according to the sources, as some dealers hide their crypto activity by utilizing VPNs. Nevertheless, the most recent statistics paint a picture of Russia’s fast-expanding cryptocurrency economy while regulators continue to dispute the country’s regulatory framework.
The central bank first suggested a complete ban on digital asset trading and all connected operations, including mining, claiming that it threatens the country’s financial system.
The Russian Central Bank had recently banned cryptocurrency, but this has since been lifted. However, the Russian government has begun developing a strategy for imposing cryptocurrency restrictions.
The Central Bank believes that a regulatory and restricted framework should govern cryptocurrencies as outlined in this roadmap. This shift in strategy occurred after Putin pushed for an agreement on the issue.
However, the Russian finance ministry then rejected the concept of a total crypto prohibition, preferring instead to establish clear restrictions.
Amid these divergent viewpoints, President Putin has weighed in on the issue, asking all parties involved to reach a regulatory solution, and indicating that he favours regulating cryptocurrency in Russia.
Given the current state of affairs, regulations for the Russian digital asset market may be implemented soon.
