Core Viewpoint - A Russian policymaker is advocating for the regulation of cryptocurrencies due to significant traffic from Russia to international crypto exchanges, highlighting the need for state oversight of digital assets [1][2]. Regulation and Legislation - Yevgeny Masharov emphasizes the urgency of launching legislation to regulate cryptocurrency circulation, proposing that all transactions outside licensed platforms should be illegal and suggesting criminal liability for illegal transactions [2]. - Current crypto trading in Russia is unregulated, with the Central Bank previously advocating for a complete ban, while the Ministry of Finance prefers regulation and taxation of profits [4]. Factors Driving Adoption - The weakening ruble, capital controls, and international sanctions have accelerated the adoption of cryptocurrencies in Russia, serving both legitimate financial needs and, in some cases, sanctions evasion [3]. - Data from TRM Labs indicates that most Russian crypto activity remains lawful, reflecting a global trend of increased digital asset adoption due to necessity and financial pressure [3]. Concerns Over Unregulated Platforms - There are concerns regarding the Telegram app, which allows users to access crypto wallet services, enabling transactions outside regulatory scrutiny and anti-money laundering measures [5]. - Masharov insists that crypto trading should be restricted to regulated financial institutions, such as the Moscow Exchange and major banks [5]. Traffic Data Insights - Russian IP addresses accounted for up to 28% of traffic to the crypto exchange Bybit in October, with 4.9 million visits from Russia out of a total of 17.5 million [6].