Currently, in Russia, the legal status of cryptocurrencies is not yet clearly established. However, this does not prevent the multiplication of automatic distributors (ATM) of bitcoins across the country.
More and more Bitcoin ATMs installed in Russia
According to data According to Coin ATM Radar, Russia currently has 52 bitcoin ATMs. This number, which has grown in a few months, echoes a growing demand for cryptocurrencies in the country.
Bitcoin ATMs generally allow you to buy cryptocurrency or exchange it for fiat currency. In Russia, the second option is currently not available. Therefore, the popularity of this service suggests that Russians are turning to cryptoassets to use as a store of value.
Another constraint, the equipment installed in the country has much higher costs than the exchanges (more than 10% fee). However, for the local population, they remain more interesting because they do not require creating an account, doing KYC verification. More importantly, they don’t expose it to censorship under European sanctions.
In addition, there is a concentration of the distribution of Bitcoin ATMs on a few regions of Russia. In fact, out of the 27 cities that have them, six account for more than half of the counters available. That said, given the population and size of the country, the current number of facilities seems insufficient. Following this logic, some companies in the sector prepare for a growth spurt by next year.
No regulatory concerns
If the firms that have these devices plan well from a commercial point of view, they seem to omit the legal component and the risks that result from it.
The reason for this is that the current legislative texts do not regulate the trading of cryptocurrencies in Russia. More concretely, this activity is neither prohibited nor authorized on the territory. This lack of clarity is all the more marked when it comes to Bitcoin ATMs.
However, it is possible that the devices in question will eventually be seized by law enforcement. As a reminder, in 2018, around twenty ATMs of the crypto company BBFPro were confiscated by order of the Central Bank of Russia.
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