What happened?
A leading Russian policymaker, Yevgeny Masharov, has suggested that the government should create a national crypto bank. This would help bring cryptocurrency transactions into the legal sector and also increase federal budget revenues by taxing crypto trading. It is hoped such a move would combat online fraud and provide an avenue for Russian Bitcoin miners to sell their coins domestically.
Who does this affect?
This proposal directly impacts Russians involved in cryptocurrency: from miners who currently lack infrastructure to sell coins within the country, to the general public and organisations that trade cryptocurrencies. It also has implications for combating illegal activities like money laundering, as cryptobank transactions could be more readily monitored compared to current quasi-legal exchanges.
Why does this matter?
The formation of a national crypto bank could have significant market impacts, particularly in Russia. The legitimization and regulation of cryptocurrency transactions could lead to boost in the federal budget due to crypto-related tax revenues. Furthermore, introducing clearer regulations may encourage more people to engage in cryptocurrency trading, potentially stimulating the digital economy. Lastly, it could be a stepping stone for creating safer cross-border business transactions using cryptocurrencies.