From Hostility to Adoption: Russia’s U-turn on Cryptos

It can be said without a shadow of a doubt that Russia practices a policy of relaxation vis-à-vis cryptos. Unofficially in any case, the country no longer opposes their emergence as it did a few months ago. Result: their use should logically gain ground.

Bank of Russia sees strong crypto market

Since they proved to be advantageous, the use of cryptos has intensified in Russia. A dynamic linked to the relaxation of the austere policy of the Kremlin regarding these assets.

For the latter, the future now looks much less bleak, with generally favorable prospects. This is what emerges froma recent report by the Central Bank of Russia (CBR) regarding the crypto market.

According to the financial institution, the use of cryptos should experience a substantial increase in the coming months. An upward trend mainly driven by the transparency inherent in them, supported by their relative ease of use.

But CBR’s outlook goes beyond simply increasing the use of these assets. Above all, she believes that their market should see an influx of new types of cryptos. Assets specifically intended to meet the growing needs of businesses in the country.

It must be said that the latter have an important need to finance their activities. An operation which is difficult for them with the sanctions of which they are victims because of the war in Ukraine.

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

It is in this context that the tokenization service Atomyze is authorized to provide its services. Ditto for the fintech Lighthouse, for the banks Sberbank and Alfa-Bank or for the Masterchain blockchain project.

Note that in addition to the law “on digital financial assets” regulating these platforms, Russian crypto regulations remain restrictive. Russia intends to stop there since a bill on the blockchain is in preparation. Another on the exchanges is also in perspective.