Several key cryptocurrency-related events occurred in Russia in the first half of March. Some indicate the sector’s development, while others highlight its weaknesses. Let's explore the main events.
Crypto investment testing
Currently, residents in Russia can buy and hold cryptocurrencies, but cannot use them for payments. Cryptocurrency holdings are taxable. On March 12, the Bank of Russia proposed allowing a limited number of 'particularly qualified' investors to buy and sell cryptocurrency. These investors should have earned over 50 million rubles last year or have deposits over 100 million rubles. Cryptocurrency trading will also be available for corporate investors. The proposal sparked discussions in the media as a crypto-friendly move, but it effectively imposes restrictions on many citizens.
Russia’s oil trade with India and China
Russia has increased its oil trade with China and India using cryptocurrencies such as Bitcoin, USDT, and Ether to circumvent sanctions. According to Reuters, this helps avoid sanction-related hurdles and simplify currency conversion. Last year, Russia passed a law encouraging the use of cryptocurrencies in international trade. Whether the government will allow broader cryptocurrency use remains uncertain.
Garantex vs Tether
Major Russian crypto exchange Garantex faced sanctions from European and U.S. authorities. In March, Tether froze $27 million in accounts, effectively halting the exchange's operations. Garantex stopped all operations and offered to resolve issues personally with clients. Shortly before, Binance announced plans to delist USDT for users from the European Economic Area. These actions raise questions about the future of stablecoins amid tightening regulations.
Events from the first half of March show that Russia continues to actively develop the cryptocurrency sector despite numerous challenges. It remains to be seen how policies and the market will evolve.
