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Russians own over $200 billion worth of cryptocurrencies going by an estimate of the country’s government. The estimate could have influenced the recent pivot the government of Russia made from wanting to ban crypto to now working on regulations for the industry as reported by Bloomberg. Russia is set to release its regulatory framework for cryptocurrencies soon.
Russians own 12% of the global crypto market value
Bloomberg reports that according to a new estimate made by the government of Russia, the cryptocurrencies held by the country’s citizens amount to over $200 billion (over 16 trillion rubles). The estimate was obtained by several methods including analyzing the IP addresses of the biggest cryptocurrency exchange users. The estimate which is equal to about 12% of the entire crypto market cap is what the government is using to frame its regulatory policy for the crypto industry.
That figure — equivalent to about 12% of the total value of global holdings, or a third of the market capitalization of Russia’s benchmark stock index — helps explain why the government sees more value in regulating the sector than imposing an outright ban, Bloomberg reports.advertisement
Russia has been passing mixed sentiments on its stance on cryptocurrencies. The Central Bank of Russia recently caused some uncertainty in the crypto market with their announcement of plans to ban the use and mining of cryptocurrencies in the country. However, the Kremlin, as Russia’s executive government is called, seems to have overridden those plans with plans of their own.
Last week, the Kremlin released a roadmap signed by the deputy chairman of the government, Dmitry Chernyshenko, that sought to put crypto regulations in place by the end of 2022. As disclosed by RBK, a Russian media outlet, the document suggested introducing know your customers (KYC) and anti-money laundering rules for crypto platforms. The roadmap also seeks to set up a supervisory body for crypto, as well as set up penalties for breaking the proposed rules.
Too big to ignore: crypto adoption is going global
The crypto market has come a long way since Bitcoin first came on the scene about 13 years ago. With a market capitalization that surpassed $3 trillion at its peak, governments are paying more attention to it. Similar to Russia, India is also making moves to recognize cryptocurrencies in its laws. Today, the finance minister of India, Nirmala Sitharaman, announced a comprehensive proposal to tax virtual and digital assets in the country.