The total annual volume of cryptocurrency transactions by Russian citizens amounts to $5 billion, according to the latest data by the country's central bank.
In its fresh review of financial stability published on Thursday, the regulator said that Russians are among the world's most active participants in the cryptocurrency market, including in terms of visits to the Binance crypto exchange. The regulator cited estimates from the largest Russian banks surveyed in July 2021.
The central bank's experts highlighted investor enthusiasm for technology, including blockchain, smart contracts, decentralized finance, and stablecoins.
The Bank of Russia, however, outlined major risks associated with the crypto industry, and said it would be closely monitoring the market.
"The relationship between digital currencies and the financial sector remains limited at the moment. However, the rapid growth and the widespread adoption of digital currencies would pose higher risks both globally and for the Russian financial market."
Earlier this year, the central bank warned people to steer clear of dealing in cryptocurrencies, cautioning that it was always risky, especially for unprepared investors.
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