Report: Legalized Crypto Trading in Russia Could Generate $46B for Regulated Platforms in Year One
Russia's biggest banking institution projects that authorized cryptocurrency trading platforms could process over $46 billion in transaction volume within 12 months of the country's crypto market legalization.
According to projections from Sber, Russia's leading financial institution, the legalization of cryptocurrency trading in the country is anticipated to generate approximately 4 trillion rubles ($46.4 billion) in transaction volume for authorized domestic trading platforms during the initial 12-month period following implementation.
By the year 2029, trading volumes for digital currencies on Russia's regulated exchange platforms could reach approximately 7.5 trillion rubles, as stated by Anatoly Popov, Deputy Chairman at Sber, in comments made to Tass during a weekend briefing.
According to Popov, the relatively cautious projection stems from the expectation that a substantial portion of cryptocurrency transactions will remain on international cryptocurrency trading platforms that operate outside Russian regulatory oversight, therefore circumventing the country's organized trading infrastructure.
These projections were made public just weeks ahead of the implementation date of Sept. 1 for Russia's updated cryptocurrency market regulatory framework, which became law following President Vladimir Putin's signature on Aug. 4.
Russia's central banking authority announced on Aug. 11 a preliminary roster of digital assets that may be authorized for public exchange trading according to the newly established regulatory framework. The roster features Bitcoin, Ether and Tether's stablecoin USDT.
According to the new regulatory framework, retail investors without qualified status will be limited to purchasing cryptocurrency valued at up to 300,000 Russian rubles annually through individual intermediaries, which may include brokers, cryptocurrency exchange platforms or asset management firms. Meanwhile, investors with qualified status will not be subject to any purchasing restrictions when acquiring crypto assets through regulated exchanges or in over-the-counter transactions.