More than half of Russians are aware of Bitcoin, the government is set to regulate

More than half of Russians are aware of Bitcoin, the government is set to regulate
Jan 24, 2018 11:11 PM By: Guest Author | 15076 Views

More than 56 percent of Russians have previously heard of Bitcoin, according to a survey conveyed by “All-Russian Center for the Study of Public Opinion, or VCIOM,”  translated by

The demand of Bitcoin and cryptocurrency as an emerging asset class amongst the youths in Russia has grown exponentially over the past few months. The survey exposed that 75 percent of individuals between ages 18 to 24 have heard about Bitcoin, and 74 percent of Russia’s capital Moscow’s population is now informed of the cryptocurrency.

But, only a youth of the individuals that have already heard about Bitcoin know that Russian citizens and residents can spend in the cryptocurrency market. Over 16 percent of the individuals with underlying information in Bitcoin still believe investing in Bitcoin is illegal in Russia.

State of cryptocurrency market in Russia

For many months, the Russian officials have teased the regulation of its local cryptocurrency exchange market. In early October of last year, Russian officials agreed to approve cryptocurrencies and regulate the country’s cryptocurrency market by licensing exchanges.

Finance Minister Anton Siluanov was excerpted by local media outlet TASS news agency as speaking:

“The President has spoken of the problems associated to cryptocurrencies. These are difficulties about ... money laundering and cases that are related to license issues. That’s why we have agreed that the state should control the issuing of cryptocurrencies, their mining and turnover. The state should take all this under control.”

At the moment, Siluanov and the rest of the Russian government came to an agreement to implement strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to counter money laundering and cryptocurrency businesses from running fraudulent transactions.

In October, the Russian Finance Ministry declared publicly that it plans to regulate the Russian cryptocurrency market by the end of 2017. In December of the corresponding year, Anatoly Aksakov, the chairman of State Duma's financial markets committee, noted that a cryptocurrency bill has been acquainted and it will likely be approved in March 2018.

"The problem is that we previously have a lot of people who get [cryptocurrencies] and they are deceived, we need to give people the possibility to work legally with it, to preserve them as much as possible," said Aksakov.

The Russian president Vladimir Putin has requested the government to set up regulations for the contract of Bitcoin and other cryptocurrencies, ICOs and mining by July 2018

Beginning this month, the Russian President announced in an interview with TASS: “This is the advantage of the Central Bank at present and the central bank has sufficient authority so far. Yet, in broad terms, legislative regulation will be required in future.”

Moreover, in late 2017, Putin also asked the Russian government to regulate its cryptocurrency mining industry correctly, as an increasing number of mining centers have reallocated to Russia to use its cheap resources and electricity.

Several Russian territories and cities have also been supporting cryptocurrency miners to relocate their businesses from other beginning regions like China to Russia, as the global cryptocurrency mining industry developed into a multi-billion dollar market.

Can Russia develop into major cryptocurrency market?

As shown in the study mentioned above, more than a quarter of Russians that are already conscious of Bitcoin and the cryptocurrency market still consider that cryptocurrency investment in Russia is illegal, and absence of regulations within the local market is limiting the adoption of Bitcoin.

Proper control of the Russian cryptocurrency market would likely drive to a surge in interest, demand, and volume, permitting Russia to fight against Japan, the US, and South Korea as a significant cryptocurrency market.

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