Russia's Cryptocurrency Market Faces Sanctions-Driven Isolation

Russian President Vladimir Putin signed a law on August 4 that legalizes cryptocurrencies in Russia, recognizing them as property and setting general requirements for their circulation.

However, according to Vladislav Kochetkov, president and chairman of the board of the Finam financial group, sanctions related to Russia's invasion of Ukraine may have a greater impact on the internal structure of the digital asset market.

Kochetkov suggests that anti-Russian restrictions could lead to the emergence of 'painted' cryptocurrency in the country, referring to digital assets that have previously passed through addresses or platforms under sanctions.

'Pained' cryptocurrency is riskier for foreign market participants, who may view it as toxic even if it continues to circulate formally.