Russia Possibly Open to Crypto Investments

While Russia has traditionally kept its doors to cryptocurrency closed for years now, the Central Bank has signalled a change in its approach towards crypto investments.

Olga Polyakova, the deputy governor of the Central Bank, recently remarked at a forum that crypto investments are possible in Russia if the investors can adequately assess the risks, reported the country’s state agency TASS.

Nonetheless, Polyakova reiterated that the administration still stands against cryptocurrency as legal tender within the territory of the Russian Federation.

This is the first time that a Russian official has been receptive towards the idea of crypto investments. While nothing has been stated officially, we couldn’t help but notice how the announcement follows the recent listing of spot Bitcoin (BTC) ETFs in the U.S.

Institutions and high net-worth individuals (HNIs) in the country would certainly be the forefront of crypto investments as and when it gets legalised.

Russia’s monetary authority, nonetheless, remains critical of cryptocurrency in general.

Only recently, the Central Bank revealed that around half of the fraudulent financial schemes that took place in Russia in 2023 involved the usage of crypto and foreign currencies. Almost all the fraudulent schemes involving including pyramids and illegal brokers involved the usage of cryptocurrency.

Russia’s concern about cryptocurrency isn’t unfounded. As far as its changing stance of crypto investments is concerned, the country’s administration might allow it but not without all the restrictions and disclaimers.

The arrival of spot Bitcoin ETFs in the U.S. has ignited interest in Asia and other countries too.

The policy seems to be similar to that of several countries where crypto isn’t a legal lender, but crypto investments are allowed amid tight scrutiny.