How Russia is going to operate a regulated, state

How Russia is going to operate a regulated, state-controlled crypto market

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Scott Melker discusses Russia’s regulated, state-controlled crypto market, which is launching on Sept. 1 under a new framework and includes strict annual limits and restrictions on domestic payments.

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So, buybacks are designed to make tokens economically valuable. The next story, Russia is preparing to make them legaly legally usable, but within extremely strict limits. Here’s the story if you missed it. Russia’s largest bank forecast a 46 billion in first-year crypto exchange trading under new rules. So the real story here is that Russia’s opening a regulated crypto market, but it’s heav heavily regulated and effectively run by the government. Now Sberbank, which is the bank we’re talking about here, many say is the biggest bank in the world and obviously very closely tied to the Russian government. So starting September 1st, they have their new crypto framework going into action. And so, they project obviously that 46 billion in first-year volume, that’s not very high by the way. And they say 87 billion by 2029. The reason it’s not very high is that ordinary retail investors, according to the rules, will be allowed to buy approved liquid cryptocurrencies, but purchases will be capped at 300,000 rubles, which carry the three carry over the five, 3700 American dollars.

300,000 rubles is $3700 American dollars, right? So and that’s annually for each intermediary. So qualified investors basically don’t have these caps. So I think that’s probably similar to accredited investors versus normal retail investors here in the United States. But cryptocurrency is still prohibited for domestic payments even though it can be used for cross-border trade settlements, which is obviously them trying to reduce their reliance on the United States dollar for trade. So Spare Bank is planning to integrate crypto wallets and custody into its existing apps, and it plans loans collateralized by Bitcoin, Ethereum and USDT once those products receive Central Bank approval approval. So, Russia’s not exactly embracing permissionless finance here, but it’s constructing a state- controlled crypto market that captures investment demand and enables cross-border settlement while keeping domestic payments under government control. Uh, not exactly a decentralized future that we were looking for, but I think everybody uh can cheer for the fact that we’re actually getting regulated crypto markets around the world. So Russia here has legalized crypto freedom, provided to use the approved assets, approved institutions and the approved amount.

Source: finance.yahoo.com