Top Banks In Russia Showing Interest in Crypto Reports Russian News Outlet RBC

Some of the top banks in Russia have expressed interest in adding blockchain and crypto-related services to their partners as they look to explore the possibilities that the industry has to offer, according to reports from local sources.

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Some of the top banks in Russia have expressed interest in adding blockchain and crypto-related services to their partners as they look to explore the possibilities that the industry has to offer, according to reports from local sources.

Crypto and blockchain industry an interesting case

Russian banks expressed their interest in the industry during a closed-door meeting which was held at the Moscow Exchange. According to an unnamed source, the demand for cryptocurrencies is on the rise in the country.

Banks, however, have not been able to meet this demand due to regulatory issues as regulators in the country have yet to recognize the cryptocurrency market officially.

Those present at the meeting pointed out that regulators in countries like Singapore, Japan, and Luxembourg have been able to regulate the industry based on their local experiences and have achieved success with cryptocurrencies so far.

Russia might be looking to do the same as the market demand continues to rise. A lobby group was recently formed which would offer some suggestions to the government regarding the regulations of the crypto market.

The report further added that a representative from a large bank in Russia has proposed the creation of a new bill that is different from the one proposed by the government. The bill will focus on cryptocurrencies and how best to address them.

The report by RBC revealed that the closed-door meeting was organized by a lobby group made up of top banks including Sberbank, Alfa-Bank, VTB, and others.

In order to regulate the local crypto industry better, the lobby group has also consulted with some global experts in the field.

They reportedly spoke with officials from BitFlyer, a Japanese crypto exchange and NEM, a blockchain platform in Singapore, and also officials from Litecoin.

The former minister of Finance of Luxembourg Luc Frieden was present at the meeting and talked about the steps his country took in establishing a legal framework for the crypto industry.

OTC taking over crypto trading in Russia

With the absence of regulation on crypto and exchanges in the country, over-the-counter (OTC) trading has taken over in Russia.

A recent report showed that despite the restrictions, demand for Bitcoin and other cryptocurrencies continue to rise with demand for Bitcoin and others reaching as high as $50 million daily trade volume in Moscow alone.

The lack of regulation has led to the stagnation of exchanges in the country. OTC has taken over, making lots of profits in the process as they charge 1.5 to 2 percent as commission rates, allowing them to rake in hundreds of thousands of dollars daily as profits.

The rise of lobby groups and more attention paid to the cryptocurrency industry might serve as a wakeup call to the regulators who have yet to approve the proposed regulations since the start of the year.

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