The Moscow Exchange, Russia’s largest exchange group, announced today that it’s offering Bitcoin futures contracts to qualified investors. TradFi institutions are entering the Bitcoin sector, but small investors may get cut out.
For example, Russia saw a surge in demand for crypto mining equipment last year, led by individuals. Rather than facilitating this industry, the state passed mining restrictions in December.
Putin’s Bitcoin Vision is Different from Trump
Local media reported on this new Bitcoin futures offering, which is an important milestone for crypto adoption in Russia. The offering trades in US dollars per lot and processes settlements in the ruble.
The Moscow Exchange joins Sberbank, another major financial institution, which started offering a Bitcoin-linked bond this week. Both firms are only offering these products to qualified investors.
Over the past months, Russia has been softening its policy towards Bitcoin and cryptocurrency. The government is embracing crypto to fight sanctions and US dollar dominance, and even advocates for similar policies to its economic partners.
This culminated in the Central Bank’s plan to launch an exchange that also began offering crypto derivatives.
However, the Central Bank is also offering these products exclusively to qualified investors. Russia’s government is clearly interested in Bitcoin, but none of these advancements prioritize everyday individuals.
There are plenty of stories of Russian crypto criminals, but where are the instances of mass adoption?
For example, Russia’s demand for Bitcoin mining equipment tripled in 2024, and individual miners spurred much of this activity.
By the end of the year, the central government issued new restrictions on mining operations, instituting a six-year ban in several regions. Rather than facilitating these enterprises, it clamped down on them.
Additionally, all three of these Russian banking institutions share a common theme in their offerings: none of them enable direct Bitcoin custody.
Qualified investors can reap rewards in fiat for purchasing exposure to crypto, but they can’t actually participate in the Web3 industry themselves. What can this tell us?
Although Russia clearly recognizes Bitcoin’s advantages, its government seems determined to keep it under tight guardrails. The US is pursuing a laissez-faire attitude to the Web3 industry, China is maintaining its harsh attitude, but Russia is substantially deviating from both approaches.
In doing so, Russia may be highlighting a new path for government Bitcoin policies. Even if they prove successful, these ideas directly contradict the decentralized ethos at the heart of cryptocurrency.
The community shouldn’t uncritically accept this TradFi adoption as a bullish development. It could cause serious damage in the long run.
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