Russia is accepting Bitcoin, but is it only for the elite?

Moscow Exchange, the largest trading group in Russia, has officially announced the offering of Bitcoin futures contracts for qualified investors. The entry of traditional financial institutions into the Bitcoin space is underway; however, retail investors may be excluded from this opportunity.

Last year, Russia witnessed a strong increase in demand for cryptocurrency mining equipment, mainly from individuals. Instead of facilitating this industry, the government imposed restrictions in December.

Putin’s vision of Bitcoin is different from Trump’s

Local media has reported on the launch of a new Bitcoin futures contract, marking an important milestone in promoting cryptocurrency adoption in Russia. This product is traded in US dollars per lot and payments are made in rubles.

Moscow Exchange has partnered with Sberbank, another major financial institution, to offer Bitcoin-linked bonds this week. Both entities are only providing these products to qualified investors.

In recent months, Russia has adjusted its policy towards Bitcoin and cryptocurrencies in a more positive direction. The government is accepting cryptocurrencies as a tool to cope with sanctions and the dominance of the US dollar, while encouraging similar policies towards economic partners.

This event has led to the Central Bank’s plan to launch an exchange that will also start offering cryptocurrency derivative products.

The Central Bank of Russia shows that Bitcoin leads in ROI among all asset classes. However, the Central Bank only offers these products to qualified investors. Clearly, the Russian government is interested in Bitcoin, but these advancements are not prioritized for ordinary individuals.

Although there are many stories about cryptocurrency crime in Russia, what are some examples of widespread application?

The demand for Bitcoin mining equipment in Russia has tripled in 2024, mainly driven by individual miners. By the end of the year, the central government issued new restrictions on mining activities, imposing a six-year ban in some areas. Instead of supporting these businesses, the government tightened control.

In addition, all three of these Russian banks have a common point in their products: none of the products allow for direct management of Bitcoin.

Qualified investors can profit in fiat currency from purchasing access to cryptocurrency, but they cannot directly participate in the Web3 industry. What does this indicate?

Although Russia is well aware of the benefits of Bitcoin, the government seems determined to keep it under tight control. While the U.S. pursues a liberal attitude towards the Web3 industry, and China maintains a strict policy, Russia is taking a different path.

This could open up a new direction for the government’s Bitcoin policies. Even if these ideas succeed, they contradict the inherent decentralized spirit of cryptocurrencies.

The community should not blindly accept the participation of traditional financial institutions as a positive sign. This could lead to severe negative impacts in the future.

Mr. Teacher