Russia has shown signs of progression in the crypto industry, and the policymakers in the country were also considering allowing crypto for cross-border payments.
The growing interest in crypto has impacted the number of ATM devices in the country, with many Bitcoin ATMs operating despite the absence of clarity in regulation. A recent report highlights Moscow as leading this initiative of increasing the number of ATMs. About 14 new cryptomats have been spotted in the city, taking up the total count to 52.
Bitcoin ATMs allow users to make purchases of one or more coins via cash or non-cash payment methods like credit cards etc., to receive the digital money in the crypto wallet. People have also advocated the sale of crypto for fiat, but the ATMs in Russia need to be equipped to support such withdrawals.
Crypto ATMs are being looked forward to by Russian citizens as it eases the otherwise process of buying coins, finding peer-to-peer exchanges, opening accounts, passing KYC procedures, etc. However, the major disadvantage is these ATMs’ high rates, which are about 10-15% higher than online rates.
Rusbit, a crypto ATM machinery company, has significantly contributed to the increase in the number of ATMs and is also expecting a surge in the coming year. It offers ATMs for between $1,800 and $3,600 and maintains 1% of the turnover. The company is registered under the digital financial assets (DFAs) law passed in January 2021. The machines share data with the Federal Tax Service, similar to cash registers, and verify the customers’ identity simultaneously to store their address records, etc.
According to the experts, there is still a lack of clarity on the operation of ATMs given that the DFA law only partially regulates crypto and related activities; however, the parliament has yet to review and pass a concrete bill on digital currency.
Ksenia Petroverts, a legal expert, said that the current legislation does not cover the exchange of digital currency for fiat money and is neither banned nor legitimized. Legal experts have also raised concerns over consumer protection and the interaction between buyer and seller of crypto via ATMs and the laws to be enacted on it.
Sergey Mendeleev, CEO of a defi banking platform, also highlighted the possibility of these Bitcoin ATMs being confiscated by the authorities and shared the example of 2018 when the Central Bank of Russia seized about 22 ATMs of a company.