From hostility to adoption: Russia's U-turn on cryptos

It can be said without a shadow of a doubt that Russia is practicing a policy of relaxation when it comes to cryptos. Unofficially, at least, the country is no longer opposed to their emergence as it was a few months ago. As a result, their usage should logically gain ground.

The Central Bank of Russia envisions a robust crypto market

Since cryptocurrencies have proven to be advantageous, their usage has intensified in Russia. This dynamic is linked to the Kremlin’s relaxation of its austere policy towards these assets.

For cryptos, the future now appears much less bleak, with overall favorable prospects. This is evident in a recent report from the Central Bank of Russia (CBR) regarding the crypto market.

According to the financial institution, the use of cryptocurrencies is expected to experience a substantial increase in the coming months. This upward trend is primarily driven by the inherent transparency of cryptocurrencies, supported by their relative ease of use.

Central Bank of #Russia forecasts significant expansion of the #digital #assets market. https://t.co/fFSNGLm70z

— Bitcoin News (@BTCTN) May 20, 2023

However, the CBR’s outlook goes beyond a simple increase in the usage of these assets. It believes that the market should see the influx of new types of crypto, specifically designed to meet the growing needs of businesses in the country.

It must be said that these businesses have a significant need to finance their activities, which is challenging due to the sanctions they face as a result of the war in Ukraine.

Given these circumstances, the Russian authorities have had to revise their initially anti-crypto stance. They have thus given their approval for the establishment of licensed crypto platforms to manage monetary claims.

In this context, the tokenization service Atomyze has been authorized to provide its services, as well as the fintech company Lighthouse, the banks Sberbank and Alfa-Bank, and the blockchain project Masterchain.

It is worth noting that besides the “Digital Financial Assets” law regulating these platforms, Russian crypto regulation remains restrictive. Russia intends to address this by preparing a bill on blockchain and another on exchanges.