Russia Seeks to Regulate Cryptocurrency Market Amid Explosive Growth

Russia's cryptocurrency market has experienced explosive growth, reaching an estimated daily transaction volume of $648 million. According to Deputy Finance Minister Ivan Chebeskov, this figure puts Russia's annual cryptocurrency turnover above $130 billion.

The majority of these transactions occur outside any regulated framework, with nearly 20 million Russians using cryptocurrency in some capacity. To address this, the finance ministry and 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.

The proposed legislation 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.