Russia does ‘absolutely nothing’ to regulate crypto, RACIB head says

The head of Russia’s state-owned investor rights protection body has stated that the country does not regulate cryptocurrency as it is a “problem for regulators to solve.”

The “bitcoin regulation” is a topic that has been hotly debated recently. Russia has done “absolutely nothing” to regulate crypto, according to the head of RACIB.

 

Despite the country’s first cryptocurrency legislation being passed in January 2021, the cryptocurrency business in Russia is still mostly uncontrolled and fraught with uncertainty, according to a local industry advocate.

The current Russian crypto rules, according to Yury Pripachkin, chairman of the Russian Association of Cryptoeconomics, Artificial Intelligence, and Blockchain (RACIB), are nothing more than “half-measures” that have nothing to do with systemic solutions.

Pripachkin mentioned Russian President Vladimir Putin giving repeated successive commands to embrace crypto law over the last four years in an interview with local news outlet RBC. The CEO said that although the global market valuation of cryptocurrencies has increased from roughly $200 billion in 2017 to $2.7 trillion today, local politicians have done nothing to capitalize on this value:

Pripachkin said, “Russia has done nothing to control the local cryptocurrency industry, which accounts for 10% of the worldwide crypto market.” He went on to say that the size of the Russian crypto market is similar to the $270 billion in yearly government budget income.

According to Pripachkin, Russia’s crypto legislation “On Digital Financial Assets” offers a legal framework for crypto in the broad sense but does not define key industry concepts such as smart contracts or govern activities such as crypto mining, issuance, or taxes.

The Russian cryptocurrency business, according to the chairman of RACIB, is mostly a grey zone. The existing crypto regulation in Russia, according to Anna Maximenko, a counsel at the international law firm Debevoise & Plimpton, is “limited to the definition of cryptocurrency” and a few other issues such as the restriction on crypto payments.

“At this time, other parts of cryptocurrency turnover, like as exchanges and investor requirements, are not regulated,” Maximenko told Cointelegraph. According to the expert, the lack of legislation results in no crypto exchanges being registered in Russia, but people may still utilize services from overseas crypto exchanges like as Binance, Huobi Global, Paxful, and others.

As $36 billion leaves banks, the Bank of Russia will analyze Bitcoin holdings quantities.

“Given the Bank of Russia’s attitude on cryptocurrencies, it’s possible that no Russian crypto exchanges will exist, while overseas crypto exchanges will continue to exist in a grey area,” Maximenko added.

The report comes as the Russian government expresses a growing interest in cryptocurrencies such as Bitcoin (BTC), with some departments offering to mine them with related gas.

However, when it comes to the interests of Russian citizens, the Russian government remains suspicious about Bitcoin, with the Bank of Russia considering limiting transfers to crypto exchanges as crypto investing grows more popular among local investors.

Related Tags

  • is cryptocurrency legal
  • how cryptocurrency works
  • is crypto the future

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