The Bank of Russia has released its latest report showing the activities of Russian nationals in the crypto market in 2023. According to the report, the bank noted that transactions in excess of $51 billion (4.7 trillion rubles) were carried out on the exchanges. The report also found that most of the transactions involved either Bitcoin or Ethereum.
Bank of Russia releases its crypto report for 2023
In the report, the bank explained the role played by its citizens in the crypto ecosystem. The $51 billion transacted in 2023 emphasizes their active participation on major crypto platforms and engagement with various assets. However, the Bank of Russia noted a slight increase in transactions involving high-risk digital assets in 2023.
The report found that some of these high-risk transactions were peer-to-peer and shadow business transactions. The bank discovered that residents in the country carried out a wide range of activities in the crypto industry. However, the report clarified that the transaction volume constituted both investments and other types of transactions.
The report also noted that despite the high volume of transactions carried out, residents assets on exchanges decreased by 3.1% compared to 2022. The decline conflicted with several reports that Russians held assets in excess of $215 billion on exchanges.
Regulatory developments and market dynamics
The increase in Russian holdings on exchanges has led to the government announcing a regulatory framework that will oversee the activities of the sector. In its report in 2023, the Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring) noted a significant increase in the popularity of digital assets in the country.
Yury Chikhanchin, the head of the agency, noted an increase in crypto turnover of about 630,000. However, he failed to give details about the transactions. Recently, there have been talks between the finance ministry and the central bank to establish a framework for cryptocurrencies.
However, Russia’s Finance Minister, Anton Siluanov, has also clarified the need to define clear guidelines regarding cryptocurrencies within the country’s legal framework. These events reflect the evolving crypto sector in Russia. These activities also showcase the need for a balanced approach to managing the risks of digital assets.
