Russian Crypto Industry Association Criticizes Government

Russian Crypto Industry Association criticizes government for doing “nothing” to regulate the industry. Authorities in Moscow have been chastised by the major group representing participants in the Russian crypto sector. For not doing enough to regulate business. President Putin urged institutions to legally define the position of digital financial technology four years ago, prompting the criticism.

Russian regulatory organizations have chastised for their conduct in relation to the country’s cryptocurrency business. Their initiatives, according to Yuri Pripachkin, president of the Russian Association of Cryptoeconomics and Artificial Intelligence. And also Blockchain (Racib), still “half-hearted” and do not intend to establish a comprehensive answer.  For Russia’s state policy on digital assets.

President Vladimir Putin issued an order on Oct. 21, 2017, mandating the development of legislation designed. It is to define the legal status of digital technologies used in the financial industry by July 2018. Pripachkin spoke to the business news portal RBC about the order. Since Putin signed the directive, the crypto market capitalization has surged by 1,250 percen. It is according to the head of Racib, formerly known as the Russian Association of Crypto Industry and Blockchain.

Cryptocurrency Matters in Russia

“From the standpoint of crypto industry regulation in the Russian Federation, according to its professional representatives. Absolutely nothing has done to bring out of the shadow the domestic segment of this market. Accounting for more than 10% of the global market. With turnover comparable to the annual federal budget revenues ($270 billion), “Pripachkin added.

After the passing of the law “On Digital Financial Assets,” which went into effect in January of this year. Cryptocurrency problems in Russia only partially regulated.  While it gives some regulatory clarity for these currencies. No rules to control their issuance and circulation in the country’s economy have established.

Pripachkin pointed out that the term “smart contract” does not appear. Either in the existing statute or the draft legislation presently being considered. Then there’s cryptocurrency mining, which, while not illegal in Russia, is nonetheless unregulated. The Racib employee went on to say that no progress has made on any of Putin’s other orders. Citing another example.

Despite the formation of a regulatory sandbox in 2018. No public blockchain project submitted for testing has gotten permission from the country’s main financial regulator. Due to the Bank of Russia’s irreconcilable stance on cryptocurrencies.

The Central Bank of Russia

The Russian Central Bank (CBR) has steadfastly opposed the legalization of cryptocurrencies such as bitcoin in the country. They regarded by the monetary authority as money substitutes. Which are also under Russian legislation. The bank warned stock exchanges earlier this year against listing financial instruments linked to digital assets. Elvira Nabiullina, the CBR’s governor. Also stated this week that the CBR is not ready to authorize the trading of bitcoin ETFs.

Russian crypto users are being pushed to export an estimated 18 trillion rubles ($255 billion) worth of funds. It is outside the Russian economy due to insufficient and opaque regulations, according to Pripachkin. According to Racib’s CEO, this is similar to the Russian federal budget’s total revenues for the entire year 2020. Or roughly 20 trillion rubles.

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