Just one in 10 Russians would invest in crypto

Only one in 10 Russian bank users are ready to invest in crypto assets, according to a recent large-scale survey.

According to a Sept. 19 report by the Russian Press Agency, a survey about investment preference conducted from Sept. 7 to Sept. 11 showed that only 10% of bank users in the Russian Federation are willing to invest in cryptocurrencies. The study involved over four thousand Russian people of ages from 18 to 60 who hold bank deposits.

The same survey also showed that 22% of the respondents are willing to exchange their money for foreign currency. This data point shows that the number of users interested in foreign currency perceived a sharp decrease from the 47% surfaced in an August poll.

Such a low percentage of Russian investors interested in cryptocurrency is particularly surprising given that a recent study named Russia one of the top 10 countries worldwide when it comes to the use of crypto assets in everyday activities. Alongside Russia, countries that it made to the top 10 are Ukraine, Venezuela, China, the U.S., South Africa, Nigeria, Kenya, Colombia and Vietnam.

A bumpy road

As Modern Consensus reported at the end of October 2019, Crypto has had a rough couple of years as Russia struggled to clarify the legal status of cryptocurrencies.

In July, Izvestia, a major newspaper, reported that Russia passed a long-awaited bill providing a legal status for cryptocurrencies and giving the Bank of Russia regulatory powers. 

Earlier this month, amendments to a draft law detailing the legality of cryptocurrencies in Russia will “tighten the screws even more” on cryptocurrency, according to Izvestia. They would ban any transaction in virtual money (except for inheritance, enforcement proceedings, and receiving assets following a bankruptcy) and impose a jail term of up to seven years for violators. 

The amendments would also allow cryptocurrency mining but ban miners from receiving payment for mining in bitcoin or ether.

A lawyer cited in the story described it as “establishing a total ban on the circulation of cryptocurrencies in Russia.”