Russia and Cryptocurrency: A Complicated Relationship

Just before Russia deployed tens of thousands of troops into Ukraine on February 24, the finance ministry introduced legislation that contradicted the central bank's desire for a blanket ban. Someone asked Manturov in a forum if he believed that cryptocurrencies would become legal as a form of payment. Of course, now that the government and the central bank are actively working on it, the question is how it will be regulated once it occurs. However, most people are aware that sooner or later, this will occur in some fashion.

Russia desires to create its digital rouble, but the government has only recently begun to endorse private cryptocurrencies. Years ago, there was a general belief that private cryptocurrencies could be used for money laundering or to fund terrorism.

Elvira Nabiullina, the head of the Central Bank, recently announced that the bank would not accept investments in cryptocurrencies, which Russians use to conduct transactions worth approximately $5 billion (€4.76 billion) annually. He suggested that the trading and mining of cryptocurrencies be made illegal.

Last year, additional central bank officials stated that they did not see a place for cryptocurrencies in the Russian financial market. According to them, the rising volume of cryptocurrency transactions posed a threat to financial stability. As a result, Manturov stated that the central bank would first establish guidelines for using cryptocurrencies, followed by the government.

Most Popular Cryptocurrencies In Russia 

The following are some of the most popular cryptocurrencies in Russia:

Bitcoin

A large number of people in Russia use Bitcoin, and forty percent of the country's population views it as a good long-term investment. Currently, You can use Bitcoin to pay for certain hotels, restaurants, cars, and furniture. This indicates that Bitcoin is already being used as a form of payment.

According to a big data platform Brand Analytics study, Bitcoin was the most popular cryptocurrency in Russia in 2021, with more social media mentions than Tether (USDT) and Litecoin (LTC).

Russian investors have become increasingly interested in cryptocurrencies over the past few years. In a survey conducted the previous year, 77% of Russian investors stated that Bitcoin was superior to gold.

Ethereum

Vitalik Buterin created Ethereum, who was born in Russia. It is among the most popular cryptocurrencies in the nation. Russia also used the Ethereum blockchain to make voting more transparent.

Golos

Golos is a cryptocurrency used in Russia. It is the Russian version of the most popular blockchain-based social network, STEEM coin. Cyber Fund, a well-known Russian cryptocurrency company, conceived and developed the platform in late 2016.

Litecoin

Also included on this list is Litecoin, used extensively in Russia. According to analysts, those who cannot afford Bitcoins are more likely to purchase Litecoins due to their affordability.

Dogecoin 

Dogecoin received a great deal of attention in 2018 after Russia accepted it as a payment method at the World Cup. But as Elon Musk continued to make modifications, the number of Americans using Dogecoin continued to rise.

Cryptocurrency Exchanges In Russia

This section will list the top Russian crypto exchanges, discuss their features, and highlight their flaws. This will make it easier to compare their features and select the one that best meets your requirements.

Binance

Binance has become a major player in the global crypto economy by launching multiple localization initiatives in various regions. In addition, the exchange has established a local community to demonstrate its continued interest in the Russian market. 

The Binance website is also accessible in Russian. This facilitates navigation and makes it easier for Russians to communicate with customer service representatives in their native language.

The Russian ruble was the first currency that Binance allowed cryptocurrency trading. Then, the introduction of an "instant buy" feature allowed Russians to purchase certain cryptocurrencies with a Visa card directly. 

The exchange has finally made its peer-to-peer trading network compatible with the ruble. All of these integrations contribute to increasing Binance's popularity in the Russian Federation. 

In addition to its efforts to localize, Binance offers a vast selection of altcoins and low trading fees. On the other hand, hackers are likely to target Binance because it is the world's most recent cryptocurrency exchange. Therefore, it is advisable to avoid using its wallet as a long-term cryptocurrency storage solution. Cold storage, or offline storage, is frequently the safer option.

Kraken

Kraken is a well-known cryptocurrency exchange operating in Russia's crypto industry. Like Binance, the U.S.-based exchange has made its website easy to use in Russian. The management team also announced a coordinated plan to increase Kraken's market visibility in Russia by hiring new Russian representatives, creating Telegram groups for its Russian users, and forming partnerships with local organizations.

The exchange did more to expand its business in Russia by promoting its crypto futures services to Russian traders. This is in addition to the extensive crypto services already provided by Kraken. However, it is essential to note that Kraken's security infrastructure remains its greatest asset. Since its 2011 inception, Kraken has not suffered a security breach. However, compared to sites such as Binance, it offers fewer coins and trading pairs.

Bittrex

Bittrex has established a presence on the Russian market, similar to Kraken and Binance. Russia accounted for 6.95 percent of all desktop traffic on Bittrex in December 2020. This is a clear indication of its growing popularity in Russia's crypto community.

In contrast to many of the other exchanges we've discussed so far, Bittrex has not done much to adapt its business to the Russian market. However, the cryptocurrency exchange is well-known because its online wallet can store a variety of altcoins and has a top-tier security system. All of these factors have increased Bittrex's popularity in Russia.

In addition, you should be aware that unless your account has been verified, you cannot deposit or withdraw fiat currency on this cryptocurrency exchange. Therefore, you may need to find a reliable cryptocurrency gateway and send the purchased coins to Bittrex.