On April 2018, a cryptocurrency exchange office Sbercoin has opened in Moscow. On May 2018, cryptocurrency was taken by the government of Russia as a currency that has equal value with fiat. With Sbercoin, identification is mandatory, which does not happen with many other Cryptocurrency. The customers can buy and sell with their ID.
The Russian has gone further and further away from fiat currency, both Ruble and US dollar, and they move closer towards cryptocurrency. There are many incidents related to cryptocurrency in Russia. For instance, Mikhail Shlyapnikov, a farmer from Moscow had created a cryptocurrency called Kolions. On April 2018, he had earned $5,000,000 from Initial Coin Offering (ICO). In two years he raised $2 Million.
Though the Russian government has never passed any regulations about cryptocurrencies, it has always been quite popular across the nation. Cryptocurrency has not been band officially either. Thus, purchase of goods and money transaction are conducted openly, illegally or legally as there is no such prohibition. Ethereum was born out of a Russian Vitalik Buteri. In January 2018, Kolesnik bought a power plant to work on mining cryptocurrency. This development was the first time Russia encountered a power plant, primarily for crypto mining.
In Moscow, the 24-hour market turnover reaches a staggering $50 Million on peak days. This tremendous “cash-crypto trade resembles the wild-wild-east street forex of the 90s……As indicated by the local press, the every day crypto turnover in the capital alone is somewhere in the range of $10 and $20 million. However, now and again, it crests at $50 million”( Hacker combat.com, September 13, 2018).
Bitcoin.com has published an article “Cash to Crypto Trade Blooming in Moscow, Reports Say” on13 September 2018. The article mentioned how 30% of the turnover registering in Moscow exchange comes from Moskva, Sadovod, and Food City. Reports confirm that most of these wholesale market are Chinese national.
Most of the cryptocurrency exchanges are done through the platform of peer-to-peer. There is a hope of getting the improved form of “On digital financial assets” by the end of 2018.