Russia Cracks Down on $130B Crypto Market with Proposed Regulation

Russia's cryptocurrency market has reached an estimated daily transaction volume of $648 million, according to the country's finance ministry. This figure puts Russia's annual cryptocurrency turnover above $130 billion.

Nearly all of this activity is occurring outside any regulated framework, with Deputy Finance Minister Ivan Chebeskov stating that 'millions of citizens are involved in this activity, representing trillions of rubles.' He noted that an estimated 20 million Russians now use cryptocurrency in some capacity.

The finance ministry and the Central Bank of Russia have proposed a draft law to regulate cryptocurrency transactions, which could be filed with the State Duma as early as March. Regulators aim for the legislation to be passed by July 1, with a transition period provided for market participants to obtain licenses and prepare internal compliance documents.

The proposed framework will focus primarily on exchanges, imposing penalties on trading platforms that fail to secure operating permits. Banks and brokers would be allowed to offer cryptocurrency services under existing licenses, while standalone cryptocurrency platforms would need separate authorization.