Russia Regulates Crypto to Protect Ruble at Home, Open Up Foreign Trade
Russia is not shutting down cryptocurrency entirely; it's just regulating who can use it and how. After new European sanctions this summer, Moscow accelerated its regulatory efforts. President Putin signed a law that opened up a regulated market for investors, and the digital ruble has recently been scaled up.
Behind the closely monitored opening lies a clear goal: protecting the Russian currency at home while finding more financial freedom abroad. Russia authorizes certain international settlements in digital assets while maintaining a ban on cryptocurrency payments within its territory.
The digital ruble saw 87,000 new accounts and over 50,000 transactions in its first ten days of large-scale deployment.
The Bank of Russia fears that stablecoins could erode monetary sovereignty if Russians start using them as substitutes for the ruble. The regulator also mentions the possibility of total loss for investors due to assets circulating beyond national legal borders.