Russia’s Crypto Chaos: Putin’s Digital Dilemma

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So, Russia’s been making headlines with crypto news lately. Some of it’s progress, some of it’s a mess. Let’s dive in and see if the Kremlin is actually serious about this whole crypto thing or if they’re just winging it. 🤷‍♂️

Table of Contents

Crypto investment testing

Here’s the deal: in Russia, you can buy and hold crypto, but you can’t actually use it to buy anything. Oh, and don’t forget the taxes! Crypto mining is allowed, except in some regions where it’s banned. Because why not make it confusing? 🙄

On March 12, the Bank of Russia decided to let a few “particularly qualified” investors trade crypto. Who qualifies? People who made over 50 million rubles last year or have deposits above 100 million rubles. So, basically, if you’re not a millionaire, tough luck. The rest of us peasants? Banned. 🚫

Media called this a “crypto-friendly” move. Sure, if you’re a multi-millionaire. For everyone else, it’s just another way to keep the little guy down. Will this proposal pass? Who knows. Russia’s laws are about as predictable as a cat on a hot tin roof. 🐱

Russia’s oil trade with India and China

Putin’s been talking about ditching the dollar for years. Now, with sanctions piling up, Russia’s using Bitcoin, USDT, and Ether in oil trades with China and India. Because nothing says “sticking it to the West” like using crypto to buy oil. 🛢️

Reuters reported on March 14 that Russia’s using crypto to avoid sanctions and make currency conversions easier. Even if sanctions are lifted, they might keep using crypto because, hey, it’s convenient. Who knew? 🤔

Last summer, Russia introduced a bill encouraging businesses to use crypto for international trade. Right now, only a small share of oil is sold for crypto, but the volume’s growing. Will the government allow broader crypto usage? Probably not. The Kremlin’s about as cautious with crypto as I am with sushi from a gas station. 🍣

Garantex vs Tether

While Russia’s using Tether’s USDT to dodge sanctions, Tether’s trying to look like the good guy. On March 6, Tether froze $27 million worth of USDT on Garantex, a sanctioned Russian crypto exchange. Garantex called it “a war on the Russian crypto market” and halted operations. Drama! 🍿

Earlier, Binance announced plans to delist USDT for users in Europe because it doesn’t comply with new regulations. Tether’s future is looking shakier than a Jenga tower in an earthquake. 🌍

Garantex resurfaced as a new exchange called Grinex. Because when one door closes, another one opens—or in this case, when one exchange gets shut down, another one pops up. 🚪

Digital Ruble launch postponed

Russia’s been working on a Digital Ruble, which is basically a CBDC that gives the government more control over its citizens. The launch was supposed to happen in 2025, but it’s been postponed. Why? Because 30% of banks can’t handle digital currencies. Surprise, surprise. 🏦

Only 20% of banks are ready for the launch. But Russia’s not giving up. Pilot testing will happen in Tatarstan in the second half of 2025. So, mark your calendars—or don’t, because who knows if it’ll actually happen. 📅

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2025-03-30 19:06