Bitcoin Transactional Activities Escalate In Russia Despite Government Apprehension

Bitcoin Transactional Activities Escalate In Russia Despite Government Apprehension

While countries like Germany and France have started warming up to the concept of cryptocurrencies and digital assets, Russian authorities continue to maintain an undecided stand against cryptocurrencies. Despite potential negative legislation in the Russian government, cryptocurrency exchanges in the country are on the rise. 

Russia’s Undecisive Stand: The Russian government has yet to take a clear regulatory stand towards digital currencies. In 2018, a bill known as ‘On Digital Financial Assets’ (FDA) was under development in Moscow to define legal regulations pertaining to cryptocurrencies. However, since that time the government has not passed the bill or actively approved any stance regarding cryptocurrencies. 

Cryptocurrency Activity Erupting In Russia

The government and central bank of Russia have historically been against digital currencies. Sources report that the 2018 FDA bill is likely to entail ban and restrict activities of crypto assets. 

While Russia has not been able to allocate a definitive legal structure towards crypto assets, activities pertaining to the crypto industry seem to be rising in the country. Bitcoin peer to peer transactions and cryptocurrency trading are both escalating. According to recent reports, more bitcoins have been traded in Russia than any other country on one of the cryptocurrency exchange platforms in April and May 2020. 

Looking Ahead: The Russian government’s cool disposition towards cryptocurrencies does not seem to affect its citizens, who have turned the country into a vibrant crypto market. However, their continued enthusiasm may depend on their government’s future legal framework surrounding cryptocurrency innovation and security.

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