Russia is taking steps to create its own system for managing crypto transactions through government-backed infrastructure.
The initiative aims to tackle the current difficulties surrounding the use of digital assets. Reports from the Russian news outlet TASS suggest that the project will introduce a new legal framework, allowing broader use of crypto in areas that have not yet been explored.
Although the State Duma and the Bank of Russia have been working on developing national regulations for crypto, the country still doesn’t have a unified government-run platform that oversees digital transactions. Such infrastructure would allow multiple organizations to use cryptocurrencies more efficiently and securely.
Ivan Chebeskov, the country’s Deputy Finance Minister, noted that there is a growing need for a domestic system that supports every part of the crypto market, from mining to trading. While he did not provide many details about the structure or purpose of the new framework, Chebeskov noted that the project is being developed jointly with the Bank of Russia.
The upcoming infrastructure is expected to form part of a national exchange linking companies, miners, and investors that want to use cryptocurrencies for cross-border payments.
The Bank of Russia has already allowed select financial institutions to create crypto-based investment products for professional investors who can handle higher risks. Some major players include the Moscow Exchange and the country’s largest bank, Sber.
Russia’s efforts reflect a larger international trend. Several countries are experimenting with digital versions of their national currencies. For instance, China has introduced the digital yuan, and the European Union has been testing its own version, the digital euro.
Despite these developments, ordinary Russian citizens still face limited opportunities to invest in crypto. The government remains cautious about opening up the market fully to the public. Still, certain steps have been taken to broaden access for specific types of investors.
Earlier this year, the Bank of Russia approved the offering of crypto derivatives for wealthy investors with assets worth over 100 million rubles ($1.2 million) or an annual income above 50 million rubles ($608,141).
The Ministry of Finance has also proposed easing these requirements to allow more participants into the market. While the bank hasn’t yet approved the changes, it has hinted that by 2026, investment funds may be permitted to hold cryptocurrencies in their portfolios.
Currently, Russian digital wallets are estimated to hold around $25 billion worth of digital assets, showing that public interest in cryptocurrencies continues to grow despite government restrictions.
Financial tech firms like Circle Internet Group Inc. (NYSE: CRCL) with a focus on blockchain technology will be pleased that the Russian government is taking steps to create infrastructure that enables the deepening of the crypto industry’s utility in the country because such actions boost the reach of the entire industry.
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