Opinion by: Sasha Ivanov, founder of Waves and Units.Network

Not long ago, the idea that an internet joke could become a multibillion-dollar asset class seemed laughable. Today, memecoins are not just mainstream. They are reshaping entire market cycles. The US now has an official memecoin associated with the president. What started as a niche community experiment has become a financial force too big to ignore.

This isn’t simply speculation. In November 2024, memecoins accounted for 65% of the total trading volume on the decentralized exchange Raydium, an all-time high. Once dismissed as internet gimmicks, these assets have become crypto’s cultural engine. This phenomenon has been causing a slight identity crisis for believers and skeptics, who need to rethink their positions. 

Whether viewed as the next retail-driven market movement or an unsustainable mania, one thing is clear: Memecoins are no longer a joke.

Memecoins are more than speculation

At their core, memecoins thrive on community belief. Traditional financial assets derive value from utility, institutional adoption or revenue models. Memecoins, by contrast, are driven by social engagement, virality and the power of collective momentum.

That makes them one of the most effective onboarding tools for retail investors in crypto. Memecoins strip away the complexity of blockchain technology, making digital assets approachable, familiar and culturally relevant. For many, they are the first step into Web3, opening the door to decentralized trading, governance and finance.

What makes them accessible, however, also makes them volatile. The same market mechanics that send memecoins soaring to billion-dollar valuations overnight can just as easily cause them to collapse within days. While one trader might turn $66 into a $3 million profit, thousands of others end up holding worthless tokens when the hype fades.

The volatility problem no one can ignore

The numbers tell the story. When Elon Musk changed his X username and profile picture, a memecoin linked to him skyrocketed to a $380 million market cap. Once Musk reversed the changes, the coin plunged to $100 million before plummeting even further.

Recent: ‘Memecoins are archetypes of the collective unconscious’

This is not an exception. This is the memecoin market in action. It is unpredictable, profit-driven and fueled by speculation. While some traders thrive in this environment, most do not. The skeptics argue that memecoins are little more than a casino with a blockchain — a game where few win and most lose.

Dismissing memecoins outright ignores a larger reality. Memecoins aren’t going away, regardless of the skepticism. They are shaping market trends. The real question is: Can memecoins transition from hype-driven speculation to a structured financial asset with governance and longevity?

Governance is the key to long-term survival

If memecoins are to evolve beyond short-term trading cycles, governance must take center stage. Decentralized autonomous organizations (DAOs) offer a model that allows holders to shape token supply, enforce transparency and influence project direction to give memecoins a real shot at sustainability.

This structure prevents centralized control by developers and whales, reducing the risk of insider manipulation, exit scams and pump-and-dump schemes. It also ensures that memecoins can integrate treasury management, staking incentives and token supply models that promote long-term viability rather than short-lived speculation.

A prime example is Floki Inu (FLOKI), a memecoin that successfully built a functional ecosystem beyond meme-driven trading. Rather than relying on short-term speculation, Floki Inu integrated non-fungible token (NFT) gaming, payments and educational initiatives, proving that memecoins can evolve into structured, community-driven assets.

Memecoins don’t need to abandon their cultural origins, but to survive beyond the current hype cycle, they must adopt governance mechanisms that promote economic sustainability.

Memecoins are at a crossroads

Memecoins have divided the crypto space into two extreme camps. On one side, memecoin maximalists insist that this bull market will be dominated by memecoins, arguing that belief and virality alone are enough to sustain them. On the other, skeptics dismiss them entirely, viewing them as pump-and-dump schemes that will eventually implode.

Both perspectives miss the bigger picture. Memecoins have proven their ability to drive market activity, but ignoring their risks is just as reckless as dismissing them outright. The real challenge is not whether memecoins should exist. They already do. The question is how to structure them to ensure security for investors, stability for the market and long-term credibility for the industry.

Builders, regulators and communities must collaborate to balance decentralization and responsible governance. Ignoring memecoins as a passing trend would be shortsighted. Failing to address their risks could be even worse — potentially leading to a catastrophic collapse that damages public trust in crypto as a whole.

Memecoins are here to stay. The real test is whether they will remain a speculative rollercoaster or mature into a legitimate digital economy sector. The answer lies not just with traders but with the builders, developers and policymakers shaping blockchain’s future.

Opinion by: Sasha Ivanov, founder of Waves and Units.Network.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Opinion by: Sasha Ivanov, founder of Waves and Units.Network

Not long ago, the idea that an internet joke could become a multibillion-dollar asset class seemed laughable. Today, memecoins are not just mainstream. They are reshaping entire market cycles. The US now has an official memecoin associated with the president. What started as a niche community experiment has become a financial force too big to ignore.

This isn’t simply speculation. In November 2024, memecoins accounted for 65% of the total trading volume on the decentralized exchange Raydium, an all-time high. Once dismissed as internet gimmicks, these assets have become crypto’s cultural engine. This phenomenon has been causing a slight identity crisis for believers and skeptics, who need to rethink their positions. 

Whether viewed as the next retail-driven market movement or an unsustainable mania, one thing is clear: Memecoins are no longer a joke.

Memecoins are more than speculation

At their core, memecoins thrive on community belief. Traditional financial assets derive value from utility, institutional adoption or revenue models. Memecoins, by contrast, are driven by social engagement, virality and the power of collective momentum.

That makes them one of the most effective onboarding tools for retail investors in crypto. Memecoins strip away the complexity of blockchain technology, making digital assets approachable, familiar and culturally relevant. For many, they are the first step into Web3, opening the door to decentralized trading, governance and finance.

What makes them accessible, however, also makes them volatile. The same market mechanics that send memecoins soaring to billion-dollar valuations overnight can just as easily cause them to collapse within days. While one trader might turn $66 into a $3 million profit, thousands of others end up holding worthless tokens when the hype fades.

The volatility problem no one can ignore

The numbers tell the story. When Elon Musk changed his X username and profile picture, a memecoin linked to him skyrocketed to a $380 million market cap. Once Musk reversed the changes, the coin plunged to $100 million before plummeting even further.

Recent: ‘Memecoins are archetypes of the collective unconscious’

This is not an exception. This is the memecoin market in action. It is unpredictable, profit-driven and fueled by speculation. While some traders thrive in this environment, most do not. The skeptics argue that memecoins are little more than a casino with a blockchain — a game where few win and most lose.

Dismissing memecoins outright ignores a larger reality. Memecoins aren’t going away, regardless of the skepticism. They are shaping market trends. The real question is: Can memecoins transition from hype-driven speculation to a structured financial asset with governance and longevity?

Governance is the key to long-term survival

If memecoins are to evolve beyond short-term trading cycles, governance must take center stage. Decentralized autonomous organizations (DAOs) offer a model that allows holders to shape token supply, enforce transparency and influence project direction to give memecoins a real shot at sustainability.

This structure prevents centralized control by developers and whales, reducing the risk of insider manipulation, exit scams and pump-and-dump schemes. It also ensures that memecoins can integrate treasury management, staking incentives and token supply models that promote long-term viability rather than short-lived speculation.

A prime example is Floki Inu (FLOKI), a memecoin that successfully built a functional ecosystem beyond meme-driven trading. Rather than relying on short-term speculation, Floki Inu integrated non-fungible token (NFT) gaming, payments and educational initiatives, proving that memecoins can evolve into structured, community-driven assets.

Memecoins don’t need to abandon their cultural origins, but to survive beyond the current hype cycle, they must adopt governance mechanisms that promote economic sustainability.

Memecoins are at a crossroads

Memecoins have divided the crypto space into two extreme camps. On one side, memecoin maximalists insist that this bull market will be dominated by memecoins, arguing that belief and virality alone are enough to sustain them. On the other, skeptics dismiss them entirely, viewing them as pump-and-dump schemes that will eventually implode.

Both perspectives miss the bigger picture. Memecoins have proven their ability to drive market activity, but ignoring their risks is just as reckless as dismissing them outright. The real challenge is not whether memecoins should exist. They already do. The question is how to structure them to ensure security for investors, stability for the market and long-term credibility for the industry.

Builders, regulators and communities must collaborate to balance decentralization and responsible governance. Ignoring memecoins as a passing trend would be shortsighted. Failing to address their risks could be even worse — potentially leading to a catastrophic collapse that damages public trust in crypto as a whole.

Memecoins are here to stay. The real test is whether they will remain a speculative rollercoaster or mature into a legitimate digital economy sector. The answer lies not just with traders but with the builders, developers and policymakers shaping blockchain’s future.

Opinion by: Sasha Ivanov, founder of Waves and Units.Network.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Opinion by: Sasha Ivanov, founder of Waves and Units.Network

Not long ago, the idea that an internet joke could become a multibillion-dollar asset class seemed laughable. Today, memecoins are not just mainstream. They are reshaping entire market cycles. The US now has an official memecoin associated with the president. What started as a niche community experiment has become a financial force too big to ignore.

This isn’t simply speculation. In November 2024, memecoins accounted for 65% of the total trading volume on the decentralized exchange Raydium, an all-time high. Once dismissed as internet gimmicks, these assets have become crypto’s cultural engine. This phenomenon has been causing a slight identity crisis for believers and skeptics, who need to rethink their positions. 

Whether viewed as the next retail-driven market movement or an unsustainable mania, one thing is clear: Memecoins are no longer a joke.

Memecoins are more than speculation

At their core, memecoins thrive on community belief. Traditional financial assets derive value from utility, institutional adoption or revenue models. Memecoins, by contrast, are driven by social engagement, virality and the power of collective momentum.

That makes them one of the most effective onboarding tools for retail investors in crypto. Memecoins strip away the complexity of blockchain technology, making digital assets approachable, familiar and culturally relevant. For many, they are the first step into Web3, opening the door to decentralized trading, governance and finance.

What makes them accessible, however, also makes them volatile. The same market mechanics that send memecoins soaring to billion-dollar valuations overnight can just as easily cause them to collapse within days. While one trader might turn $66 into a $3 million profit, thousands of others end up holding worthless tokens when the hype fades.

The volatility problem no one can ignore

The numbers tell the story. When Elon Musk changed his X username and profile picture, a memecoin linked to him skyrocketed to a $380 million market cap. Once Musk reversed the changes, the coin plunged to $100 million before plummeting even further.

Recent: ‘Memecoins are archetypes of the collective unconscious’

This is not an exception. This is the memecoin market in action. It is unpredictable, profit-driven and fueled by speculation. While some traders thrive in this environment, most do not. The skeptics argue that memecoins are little more than a casino with a blockchain — a game where few win and most lose.

Dismissing memecoins outright ignores a larger reality. Memecoins aren’t going away, regardless of the skepticism. They are shaping market trends. The real question is: Can memecoins transition from hype-driven speculation to a structured financial asset with governance and longevity?

Governance is the key to long-term survival

If memecoins are to evolve beyond short-term trading cycles, governance must take center stage. Decentralized autonomous organizations (DAOs) offer a model that allows holders to shape token supply, enforce transparency and influence project direction to give memecoins a real shot at sustainability.

This structure prevents centralized control by developers and whales, reducing the risk of insider manipulation, exit scams and pump-and-dump schemes. It also ensures that memecoins can integrate treasury management, staking incentives and token supply models that promote long-term viability rather than short-lived speculation.

A prime example is Floki Inu (FLOKI), a memecoin that successfully built a functional ecosystem beyond meme-driven trading. Rather than relying on short-term speculation, Floki Inu integrated non-fungible token (NFT) gaming, payments and educational initiatives, proving that memecoins can evolve into structured, community-driven assets.

Memecoins don’t need to abandon their cultural origins, but to survive beyond the current hype cycle, they must adopt governance mechanisms that promote economic sustainability.

Memecoins are at a crossroads

Memecoins have divided the crypto space into two extreme camps. On one side, memecoin maximalists insist that this bull market will be dominated by memecoins, arguing that belief and virality alone are enough to sustain them. On the other, skeptics dismiss them entirely, viewing them as pump-and-dump schemes that will eventually implode.

Both perspectives miss the bigger picture. Memecoins have proven their ability to drive market activity, but ignoring their risks is just as reckless as dismissing them outright. The real challenge is not whether memecoins should exist. They already do. The question is how to structure them to ensure security for investors, stability for the market and long-term credibility for the industry.

Builders, regulators and communities must collaborate to balance decentralization and responsible governance. Ignoring memecoins as a passing trend would be shortsighted. Failing to address their risks could be even worse — potentially leading to a catastrophic collapse that damages public trust in crypto as a whole.

Memecoins are here to stay. The real test is whether they will remain a speculative rollercoaster or mature into a legitimate digital economy sector. The answer lies not just with traders but with the builders, developers and policymakers shaping blockchain’s future.

Opinion by: Sasha Ivanov, founder of Waves and Units.Network.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

A large cryptocurrency trader, known as a whale, lost more than $308 million on a leveraged Ether position, underscoring the risks of leveraged trading during volatile market conditions.

The unknown crypto trader was liquidated on their 50x leveraged long position for over 160,234 Ether (ETH), worth more than $308 million at the time of writing, Hypurrscan data shows.

Leveraged positions use borrowed money to increase the size of an investment, which can boost the size of both gains and losses, making leveraged trading riskier compared to regular investment positions.

The crypto trader’s address showing transactions. Source: Hypurrscan 

The crypto whale opened the initial 50x leveraged position when ETH traded at $1,900, with a liquidation price of $1,877.

Source: Lookonchain 

According to onchain intelligence firm Lookonchain, the whale had rotated all of his Bitcoin (BTC) holdings into the leveraged Ether trade before suffering the liquidation.

The liquidation came during a period of heightened volatility, as both crypto and traditional markets are limited by global trade war concerns due to the latest retaliatory tariffs from the European Union. 

Related: Bitcoin reserve backlash signals unrealistic industry expectations

Ether risks correction to $1,800 amid tariff fears, ETF outflows

Ether’s price has fallen by more than 53% since it began its downtrend on Dec. 16, 2024, after it had peaked above $4,100.

ETH/USD, 1-day chart, downtrend. Source: Cointelegraph/ TradingView 

The main reasons behind Ether’s downtrend are the ongoing macroeconomic concerns and lack of builder activity on the Ethereum network, according to Bitfinex analysts.

“A lack of new projects or builders moving to ETH, primarily due to high operating fees, is likely the principal reason behind the lackluster performance of ETH. […] We believe that for ETH, $1,800 will be a strong level to watch,” the analysts told Cointelegraph.

Related: Deutsche Boerse to launch Bitcoin, Ether institutional custody: Report

“However, the current sell-off is not being seen solely in ETH, we have seen a marketwide correction as fears over the impact of tariffs hit all risk assets,” they added.

The US spot Ether exchange-traded funds (ETFs) are also limiting Ether’s upside.

Total spot Ether ETF net inflow. Source: Sosovalue

US spot Ether ETFs have entered a fourth consecutive week of net negative outflows, after seeing over $119 million worth of cumulative outflows during the previous week, Sosovalue data shows.

Magazine: Ethereum L2s will be interoperable ‘within months’: Complete guide

American asset manager Franklin Templeton has entered the growing XRP exchange-traded fund (ETF) race, becoming the latest firm to file for a spot XRP ETF in the United States.

Franklin Templeton’s XRP (XRP) ETF is designed to track the performance of the XRP price, with XRP holdings stored at Coinbase Custody Trust, according to an official filing with the US Securities and Exchange Commission on March 11.

On the same day, the SEC postponed decisions on multiple crypto ETF filings, including Grayscale’s proposal to convert its XRP Trust into an ETF.

Despite the growing XRP ETF filing frenzy, BlackRock — issuer of the largest spot Bitcoin (BTC) ETF — has yet to submit a filing for an XRP-based product.

Who has filed for an XRP ETF in the US?

As of March 12, nine companies have filed for XRP ETF products in the US, including major issuers like Bitwise, ProShares, 21Shares and others.

Bitwise, one of the world’s largest crypto funds managers, was the first firm to submit a Form S-1 filing for an XRP ETF on Oct. 2, 2024.

Canary Capital subsequently followed, filing a Form S-1 for a similar product on Oct. 8, 2024.

Switzerland-based crypto investment firm 21Shares and US ETF provider WisdomTree also filed for XRP ETFs in late 2024, with filings coming in November and December, respectively.

Asset manager ProShares joined the XRP ETF race in 2025 by filing for several XRP ETF products with the SEC on Jan. 17, including the ProShares XRP ETF and three additional XRP investment products.

Related: VanEck registers Avalanche ETF in US as AVAX drops 55% year-to-date

Another XRP ETF filing came from the European crypto investment firm CoinShares in January, with Grayscale proposing to convert its XRP Trust into an XRP ETF trading on the New York Stock Exchange on Jan. 30.

Volatility Shares, a Florida-based financial services firm founded in 2019, also filed three XRP ETF products on March 7, including the Volatility Shares XRP ETF, the Volatility Shares 2x XRP ETF and the Volatility Shares -1x XRP ETF.

Other filings featuring XRP ETFs

Beyond dedicated XRP ETF filings, at least two asset managers have included XRP in broader crypto ETF products.

On Jan. 21, asset manager REX-Osprey filed for an “ETF Opportunities Trust,” which includes seven ETFs tracking assets including major coins such as XRP and Bitcoin, as well as memecoins like Bonk (BONK) and Official Trump (TRUMP).

Similarly, Tuttle Capital Management submitted an ETF opportunities trust filing, including 10 daily target ETFs, covering assets such as XRP and Melania (MELANIA).

ETF compositions in the ETF opportunities trusts by Tuttle Capital Management and REX-Osprey. Source: SEC

Aside from BlackRock, a number of crypto ETF providers have not yet filed for XRP ETFs, including Invesco, VanEck, ARK Invest, Fidelity Investments and Galaxy Digital.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Real-world asset (RWA) tokenization company Securitize has selected RedStone as the primary oracle provider for its tokenized products, which include BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and the Apollo Diversified Credit Securitize Fund (ACRED).

According to a March 12 announcement, RedStone will deliver price feeds for current and future tokenized products offered by Securitize. As a DeFi-focused oracle provider, RedStone will purportedly expand the use cases of BUIDL and ACRED into money market exchanges and collateralized DeFi platforms, Securitize said.

RedStone provides crosschain data feeds for decentralized finance protocols on Ethereum, Avalanche and Polygon. According to DefiLlama data, it has amassed $4.3 billion in total value secured across all clients. 

RedStone’s total value secured as of March 11. Source: DefiLlama

In July, RedStone raised $15 million in a Series A funding round led by Arrington Capital, with additional participation from Spartan, IOSG Ventures, HTX Ventures and others. 

Securitize selected RedStone as its oracle provider because of its “modular design,” which means it “can scale to thousands of chains and support new implementations in a matter of days,” RedStone chief operating officer Marcin Kazmierczak told Cointelegraph in a written statement.

By using the RedStone oracle price feeds, Securitize’s funds “can now be utilized across DeFi protocols such as Morpho, Compound or Spark,” he said.

Related: BlackRock CEO wants SEC to ‘rapidly approve’ tokenization of bonds, stocks: What it means for crypto

Institutional interest in tokenized assets on the rise

Securitize co-founder and CEO Carlos Domingo told Cointelegraph that demand for tokenized funds is growing across a “diverse range of investors and users” spanning traditional finance and crypto-native firms.

“Institutional investors, private equity firms, and credit managers are turning to tokenization to enhance efficiency, reduce operational friction, and improve liquidity for private markets,” he said.

On the crypto-native side, companies “see tokenized RWAs as a secure and efficient way to manage treasury reserves while benefiting from stable yields,” said Domingo.

So far, the tokenization of private credit and US Treasury bonds have seen the largest uptake, according to industry data. The total market for onchain RWAs is approaching $18 billion, having grown by 16.8% over the past 30 days, according to RWA.xyz. 

At $12.1 billion, private credit accounts for 68% of the tokenized RWA market. Source: RWA.xyz

Separate data from Security Token Market showed that more than $50 billion worth of assets were tokenized by the end of 2024, with the majority coming from real estate. 

The tokenization market has attracted significant players in recent years, with the likes of Ondo Finance, Tradable and Brickken entering the fray. 

Related: Trump-era policies may fuel tokenized real-world assets surge

Bitcoin’s next significant price catalyst may arrive Friday as the US debt suspension period comes to an end, potentially injecting fresh liquidity into markets and driving a price rebound.

The US Treasury hit its $36 trillion debt ceiling a day after President Donald Trump’s inauguration on Jan. 20. A “debt issuance suspension period” began then and was set to last until March 14, according to a letter published on Jan. 17.

Bitcoin (BTC) has dropped 22% during the two-month debt suspension plan, from over $106,000 on Jan. 21 to $82,535 at the time of writing on March 12, TradingView data shows.

BTC/USD, 1-day chart since Debt suspension plan. Source: Cointelegraph/TradingView 

A resumption of government spending may bring a liquidity boost to catalyze Bitcoin’s next rally, according to Ryan Lee, chief analyst at Bitget Research.

“With in-hand cash, the demand for financial assets such as stocks and crypto can increase, and there may be a relief from ongoing volatility,” the analyst told Cointelegraph. “In such periods, we can expect a boost in the overall momentum, although many other factors are important to note.”

Beyond global tariff uncertainty, “concerns such as inflation, interest rates and geopolitical issues remain unresolved,” Lee added.

Considering that the debt suspension will end just two weeks after the White House Crypto Summit, a portion of the new liquidity may flow into cryptocurrencies, according to Aleksei Ponomarev, co-founder and CEO of crypto index investing firm J’JO.

“Surges in liquidity have typically benefited Bitcoin and risk assets, and the end of the US debt suspension will be no different,” he told Cointelegraph, adding:

“While the liquidity surge will undoubtedly drive market price movement, it is limited to short-term impact. The long-term trajectory of Bitcoin is, and remains, tied to institutional investments, ETF growth and regulatory clarity and implementation.”

GMI Total Liquidity Index, Bitcoin (RHS). Source: Raoul Pal

Bitcoin’s right-hand side (RHS), which marks the lowest bid price for which someone is willing to sell the currency, may still face a potential correction to near $70,000 until the end of the debt suspension period on Friday, based on its correlation with the global liquidity index.

Still, the growing money supply could push Bitcoin price above $132,000 before the end of 2025, according to estimates from Jamie Coutts, chief crypto analyst at Real Vision.

BTC projection to $132,000 on M2 money supply growth. Source: Jamie Coutts

Related: Bitcoin may benefit from US stablecoin dominance push

Bitcoin price still limited by global trade war concerns

While more global liquidity is an optimistic sign for Bitcoin, the world’s first cryptocurrency remains limited by global trade tariff concerns, according to James Wo, the founder and CEO of venture capital firm DFG:

“While some may argue that retaliatory measures from tariff-imposed countries were already priced in, tariffs have a delayed economic impact beyond their initial announcement.”

“Higher import costs and reduced corporate margins are likely to push inflation higher, forcing central banks to keep interest rates elevated for longer under a restrictive monetary policy,” he added.

This may also tighten liquidity conditions, making risk assets such as Bitcoin “less attractive in the short to medium term,” Wo said.

Related: Bitcoin reserve backlash signals unrealistic industry expectations

The European Union introduced retaliatory tariffs on March 12, threatening a Bitcoin correction below $75,000 in the short term. This may occur temporarily due to Europe accounting for over $1.5 trillion of annual US exports.

Despite the short-term correction concerns, most analysts remained optimistic about Bitcoin’s price trajectory for late 2025, with price predictions ranging from $160,000 to above $180,000.

Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1

The Russian central bank is considering a three-year experimental regime to authorize select Russian investors to trade cryptocurrencies.

On March 12, the Bank of Russia announced a proposal to allow a “limited circle of Russian investors” to buy and sell cryptocurrencies like Bitcoin (BTC).

“In accordance with the instructions of the President of Russia, the Bank of Russia has sent proposals to the government for discussion on regulating investments in cryptocurrencies,” the announcement stated.

While proposing to legalize crypto trading for investors with at least $1.1 million in securities and deposits, the Bank of Russia also suggested introducing penalties for violations of the experimental regime.

Retail crypto payments remain strictly banned

The central bank reiterated that other residents cannot settle payments using crypto.

The ban on using cryptocurrencies like Bitcoin for payments in Russia was part of the country’s first crypto law, “On Digital Financial Assets,” which came into force in January 2021. In the new proposal, the central bank stated:

“The Bank of Russia still does not consider cryptocurrency as a means of payment. Therefore, it proposes to also introduce a ban on settlements between residents on transactions with cryptocurrency outside the experimental legal regime, as well as establish liability for violating the ban.”

Despite banning residents from using crypto for payments in Russia, the Bank of Russia has been open about allowing cross-border settlements in crypto since at least 2022.

In December 2024, Russian Finance Minister Anton Siluanov confirmed that Russia has been actively experimenting with crypto in foreign trade in line with the country’s legislation, referring to an experimental legal regime enforced in September 2024.

Reasons for introducing new regulations

The Bank of Russia’s reasoning for introducing the new experimental legal regime for crypto investments by limited investors came from efforts to increase the transparency of the local crypto market, the announcement noted.

According to the central bank, such a framework would introduce standards for crypto asset service providers in Russia and expand investment opportunities for experienced investors willing to take on increased risks.

“The Bank of Russia has repeatedly noted that private cryptocurrencies are not issued or guaranteed by any jurisdiction, based on mathematical algorithms and are subject to increased volatility,” the authority stated, adding:

“Therefore, investors, when deciding to invest in cryptocurrency, should be aware that they are taking on the risks of potential loss of their funds.”Rising odds of a “Russian MicroStrategy?”

In the announcement, the central bank mentioned that it also proposed to allow qualified companies to become participants in the experiment.

“For financial institutions that want to invest in cryptocurrency, the Bank of Russia will establish regulatory requirements taking into account the level and nature of the risks of such an asset,” the authority stated.

Related: Tether freezes $27M USDT on sanctioned Russian exchange Garantex

By potentially allowing eligible Russian firms to invest in cryptocurrencies, the Bank of Russia could be paving the way for a “Russian MicroStrategy,” or a company that would be committed to buying large amounts of BTC following the lead of Michael Saylor’s Strategy, formerly known as MicroStrategy.

Russia’s seven largest companies by market capitalization. Source: CompaniesMarketCap 

A number of companies worldwide, including Elon Musk’s Tesla, Japanese Metaplanet and Brazilian fintech unicorn Meliuz, have started purchasing BTC since Saylor’s Strategy purchased its first coins in August 2020.

Outside the experimental regime, it is also planned to allow all qualified investors to invest in derivative financial instruments, securities and digital financial assets that are tied to the value of cryptocurrency assets, the central bank added.

Magazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express

The Russian central bank is considering a three-year experimental regime to authorize select Russian investors to trade cryptocurrencies.

On March 12, the Bank of Russia announced a proposal to allow a “limited circle of Russian investors” to buy and sell cryptocurrencies like Bitcoin (BTC).

“In accordance with the instructions of the President of Russia, the Bank of Russia has sent proposals to the government for discussion on regulating investments in cryptocurrencies,” the announcement stated.

While proposing to legalize crypto trading for investors with at least $1.1 million in securities and deposits, the Bank of Russia also suggested introducing penalties for violations of the experimental regime.

Retail crypto payments remain strictly banned

The central bank reiterated that other residents cannot settle payments using crypto.

The ban on using cryptocurrencies like Bitcoin for payments in Russia was part of the country’s first crypto law, “On Digital Financial Assets,” which came into force in January 2021. In the new proposal, the central bank stated:

“The Bank of Russia still does not consider cryptocurrency as a means of payment. Therefore, it proposes to also introduce a ban on settlements between residents on transactions with cryptocurrency outside the experimental legal regime, as well as establish liability for violating the ban.”

Despite banning residents from using crypto for payments in Russia, the Bank of Russia has been open about allowing cross-border settlements in crypto since at least 2022.

In December 2024, Russian Finance Minister Anton Siluanov confirmed that Russia has been actively experimenting with crypto in foreign trade in line with the country’s legislation, referring to another experimental legal regime, which was enforced in September 2024.

Reasons for introducing new regulations

The Bank of Russia’s reasoning for introducing the new crypto program for limited investors came from efforts to increase the transparency of the local cryptocurrency market, the announcement noted.

According to the central bank, such a framework would introduce standards for crypto asset service providers in Russia and expand investment opportunities for experienced investors willing to take on increased risks.

“The Bank of Russia has repeatedly noted that private cryptocurrencies are not issued or guaranteed by any jurisdiction, based on mathematical algorithms and are subject to increased volatility,” the authority stated, adding:

“Therefore, investors, when deciding to invest in cryptocurrency, should be aware that they are taking on the risks of potential loss of their funds.”Rising odds of a “Russian MicroStrategy?”

In the announcement, the central bank said that it also proposed to allow qualified companies to become participants in the experiment.

“For financial institutions that want to invest in cryptocurrency, the Bank of Russia will establish regulatory requirements taking into account the level and nature of the risks of such an asset,” the authority stated.

Related: Tether freezes $27M USDT on sanctioned Russian exchange Garantex

By potentially allowing eligible Russian firms to invest in cryptocurrencies, the Bank of Russia may be paving the way for a “Russian MicroStrategy,” or a company that would be committed to buying large amounts of BTC following the lead of Michael Saylor’s Strategy, formerly known as MicroStrategy.

Russia’s seven largest companies by market capitalization. Source: CompaniesMarketCap 

A number of companies worldwide, including Elon Musk’s Tesla, Japan’s Metaplanet and Brazilian fintech unicorn Meliuz, have started purchasing BTC since Saylor’s Strategy purchased its first coins in August 2020.

Outside the experimental regime, all qualified investors will be able to invest in derivative financial instruments — securities and digital financial assets that are tied to the value of cryptocurrency assets — the central bank said.

Magazine: Mystery celeb memecoin scam factory, HK firm dumps Bitcoin: Asia Express