Russia’s Crypto Market Tops $44 Billion, Government Targets Offshore Transactions

Russian authorities have reported surging crypto transactions and active users, with figures expected to follow a similar pattern in the coming months. This comes amid new digital asset regulations in the country after ten long years of consideration. 

Regulators Pitch Transparent Digital Growth

In an interview at the Moscow Financial Forum (MFF), Deputy Finance Minister Ivan Chebeskov discussed the latest regulations on digital markets, crypto adoption, stablecoin use, and foreign markets.

According to him, the country’s crypto users are increasing their holdings and activity due to new regulations and market clarity. Holders are now estimated at more than 20 million users with direct holdings and links to certain financial products.

Total crypto value among these users is about $44 billion (3.7 trillion rubles), while daily transactions stand at $595 million (50 billion rubles). He hinted at a rise in figures as a significant portion of the market becomes more regulated.

For several years, previous figures largely depended on expert assessment. Russia’s comprehensive crypto rules are expected to attract new institutional players and boost domestic sentiment, as seen in other jurisdictions. 

Chebeskov lauded new market solutions in the process of finding the balance between preventing illegal use of crypto assets among stakeholders and accepting that a large number of legal users (institutional and retail) exist.

“… we managed to find optimal solutions for the market. Therefore, the approach gradually evolved. Initially, the discussion centered on prohibition and liability, then shifted to limited regulation and the launch of an experimental legal regime. Ultimately, they arrived at comprehensive regulation.”

On stablecoins, he added that the Ministry is working with the Bank of Russia on a framework for stablecoins and how it affects local markets. For now, each player in a foreign stablecoin transaction has its own responsibility. 

While the digital depository is liable for storage, accounting, and transfer issues, losses under foreign law fall on the user. In the coming months, regulators will assess how assets are being used and possible rules aimed at better structures.

Over the years, Russia has had a mixed response to cryptocurrencies, initially stressing the negative impacts of private coins. However, after the invasion of Ukraine and the sanctions, institutions are now leaning toward these assets.