A recent estimate by the Russian government has revealed that locals currently own more than 16.5 trillion rubles ($214 billion) worth of cryptocurrencies.
Russians Control 12% of Crypto Market
According to a Bloomberg report on Tuesday, this figure represents approximately 12% of the total value of global crypto holdings or one-third of the market cap of Russia’s stock index.
Citing unidentified people familiar with the matter, the report noted that the crypto holdings estimate was calculated by analyzing the IP addresses of some of the top digital asset exchange users, in addition to other data sources.
According to the sources working with the government and the Kremlin, the estimates are currently being used to get an overview of the scope of the coucountry’sypto market and create new regulations. However, the proposals have not been finalized.
The sources maintain that the $214 billion estimate might be low as some traders conceal their crypto activities by using VPNs, given the lack of regulatory clarity in the country.
Nevertheless, the current number is still a big jump from the data shared in December by the head of the lower house of parliparliament’sncial markets committee, Anatoly Aksakov. It cited that Russians owned crypto worth about 5 trillion rubles ($65 billion).
Russian Regulators Debate Over Crypto Regulation
The latest data provides a picture of the rapidly growing Russian cryptocurrency market as watchdogs continue to debate over regulation in the country.
The central bank initially proposed a total ban on digital asset trading and all related activities, including mining, stating that it threatens the nation’s encountry’sncial system.
However, the Russian finance ministry subsequently opposed the idea of a total crypto ban, opting instead for clear regulations to be put in place.
Amid all these conflicting opinions, President Putin has weighed in on the matter, urging the involved parties to find a regulatory compromise, with himself leaning towards the idea of regulating crypto in Russia.
With the current state of events, the Russian digital asset market might soon see regulations established.