Get Bitcoin or die trading! – The Russians hold around $ 130 billion in cryptocurrency, but the government has yet to do so approved legislation about crypto. In fact, collectively they hold up over 10 trillion rubles ($ 130 billion) in cryptocurrencies such as Bitcoin (BTC). In any case, Russian Prime Minister Mikhail Mishustin said on Thursday 7 April during the presentation of the Russian government’s annual report.
Russians invest in Bitcoin and cryptocurrencies
Russian Prime Minister says Russian cryptocurrency holdings are worth billions of dollars. However, the government has not a regulatory framework has not yet been adopted for industry. However, when presenting the Russian government’s annual report, Mikhail Mishustin did not mention the source of this figure, noting that this amount comes from “various estimates”.
“We are well aware that we have more than 10 million young people who have so far opened cryptographic wallets to which they have transferred large sums, exceeding 10 trillion rubles. “
Mikhail Mishustin, Russian Prime Minister
If true, the latest estimates of Russian crypto holdings cited by Mishustin are quite close to the Russian gold reserve. The latter amounted to 140 billion dollars at the end of March 2022. According to White House estimates, Russia’s gold reserves account for about 20% of the country’s total central bank reserves.
The latest Russian government figures come months after the Bank of Russia announced it intention to assess the size of local cryptocurrencies. Since then, the central bank has estimated that Russia’s annual cryptocurrency transactions are worth only about $ 5 billion. Earlier this year, some sources estimated total Russian cryptocurrencies at $ 214 billion.
Russians are investing more and more in cryptocurrencies. However, the Russian government was somehow slow to adopt clear rules to regulate this market growing. Several government structures have failed to reach consensus on how to regulate the sector.
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Russia struggles to regulate cryptocurrencies
On Friday, the Russian finance ministry presented the government with a new version of its cryptocurrency bill. The document had previously been amended in accordance with comments from other ministries and regulators. As previously reported, the Central Bank of Russia was one of the biggest local skeptics regarding cryptocurrencies. Bank of Russia Governor Elvira Nabiullina actually urged the state to ban Bitcoin earlier this year.
As Russia becomes the most sanctioned country in the world, a number of world officials have expressed concern over the growing narrative of Russia’s potential to use cryptocurrencies to evade sanctions. On Friday the Council of the European Union published the fifth package of restrictive measures against Russia. Therefore, he approved the ban on providing “high value cryptocurrency services in Russia”. The Council stated in the official statement that “This will help fill potential gaps”.
Earlier this week, Bank of Russia First Deputy Governor Ksenia Yudaeva said circumventing cryptocurrency sanctions in Russia was “virtually impossible”. Especially for large transactions. Apparently, the central bank reiterated that cryptocurrencies like Bitcoin were “Actually a financial pyramid scheme”.
Some of the top leaders in the cryptocurrency industry are convinced that cryptocurrencies are of no use to Russians. According to them, they cannot use it as a tool to evade sanctions.
“Most transactions have to go through a centralized exchange (…) because decentralized exchanges do not yet have sufficient liquidity. (…) It is therefore a misconception that Bitcoin is anonymous. Bitcoin’s anonymous functionality is very, very weak. “
Changpeng Zhao, Founder and CEO of Binance
Although Russia has not yet taken clear steps to regulate cryptocurrencies, the Russians appear to be massively adopting Bitcoin and cryptocurrencies. The government therefore decided to do so legalize mining as soon as possible.
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