Majority of Russia's Qualified Investors Now Hold Crypto Assets

A recent survey reveals that more than half of Russia's 'qualified investors' have already invested in cryptocurrencies, with a significant portion of the remainder expressing interest in future investments. The preference among these investors is to convert Russian rubles into digital currencies. The study, highlighting the increasing crypto turnover in Russia, found that 52% of qualified investors have engaged with cryptocurrency instruments, while 38% are considering it, bringing total interest to 90%. Conducted among 1,500 individuals over 20 in cities with populations exceeding 100,000, all participants were qualified investors holding at least 50,000 rubles (approximately $600) in financial assets. Despite the lack of comprehensive cryptocurrency regulations in Russia, the Bank of Russia and the Ministry of Finance have indicated restrictions, proposing an 'experimental legal regime' for a select group of highly qualified investors. These individuals would need to demonstrate substantial annual income and investments. Meanwhile, the Central Bank of Russia has allowed qualified investors to trade in crypto derivatives, prompting Russian financial institutions to offer related products. Despite regulatory hurdles, Russians have amassed over $25 billion in crypto assets, with interest in crypto-based products expected to rise due to increased offerings from established firms. Key investment motives include long-term holdings, portfolio diversification, and short-term speculation, with domestic platforms and ruble transactions being preferred. Challenges to crypto investment include lack of knowledge and high volatility.