Member-only story
What cryptocurrency was the most popular in Russia in 2021?
The Russian central bank purportedly stated that it wishes to prohibit cryptocurrency investments in the nation, citing the increasing volume of crypto transactions as a threat to financial stability.
The country’s financial authority did provide legal recognition to digital currencies in 2020, but it restricted their use as a mode of payment.
However, Anatoly Aksakov, head of the Duma Committee on Financial Markets, stated that the entire restriction of cryptocurrencies, such as acquisition or ownership, would be taken very seriously.
“There is a model where adequate crypto exchanges must exist, where everything is legalized, clear, and intelligible to regulatory agencies,” he explained.
“It would be simpler for Russia’s Federal Tax Service to tax such exchange transactions.”
For the time being, Russian authorities prioritize the development of a CBDC ruble and have imposed strict regulations on the private crypto industry, including prohibiting mutual funds from participating in Bitcoin (BTC).
According to current data, Russians trade around $5 billion in cryptocurrencies each year, and cryptocurrencies constitute a hedge for 46 percent of Russian retail investors.
