Although Russia passed its first cryptocurrency law in January 2021, the country’s digital currency market remains largely unregulated and subject to much uncertainty, according to a local industry official.
Yuri Pripachkin, president of the Russian Federation of Cryptoeconomics, Artificial Intelligence and Blockchain (RAKIB), claimed that the current cryptocurrency rules in Russia are nothing more than “half measures” that have nothing to do with system solutions.
In an interview with the local news agency RBK, Pribachkin noted that Russian President Vladimir Putin has given several successive orders to adopt crypto-regulation in the last four years. The CEO stressed that the total market value of cryptocurrencies has grown from around $ 200 billion in 2017 to $ 2.7 trillion today, but local lawmakers have done little to achieve this value:
“Russia has done absolutely nothing to regulate the internal cryptocurrency market, which accounts for 10% of the global cryptocurrency market,” Pribachkin said. He added that the size of the Russian crypto market is comparable to the annual federal budget revenue of $ 270 billion.
Pripachkin argued that Russia’s cryptocurrency law “On digital financial assets” provides a legal basis for cryptocurrencies in the broadest sense, but does not define key industry concepts such as smart contracts, and does not regulate activities such as mining, issuance and taxation of cryptocurrencies. …
Not only does the RACIB chief believe that the Russian cryptocurrency industry is in many ways a gray area. Anna Maksimenko, a consultant at the international law firm Debevoise & Plimpton, believes that the current regulation of cryptocurrency in Russia is “limited to the definition of cryptocurrency” and some other aspects, such as a ban on cryptocurrencies.
“Other aspects of the circulation of cryptocurrencies, including stock exchanges and investor requirements, are not currently regulated,” Maksimenko told Cointelegraph. According to the expert, the lack of regulation means that cryptocurrency exchanges are not registered in Russia, and residents can still use the services of such cryptocurrency exchanges as Binance, Huobi Global, Paxful and others.
About the topic: Bank of Russia estimates the size of its bitcoin holdings at $ 36 billion left by banks
“Given the negative attitude of the Bank of Russia towards cryptocurrencies, the reason may be that there will be no Russian cryptocurrencies, and foreign cryptocurrencies will remain in a gray area,” Maksimenko said.
The news comes as the Russian government is showing a growing interest in cryptocurrencies such as Bitcoin (BTC), with some ministries offering the extraction of cryptocurrencies with associated gas.
However, the Russian government remains skeptical of Bitcoin in terms of citizens’ interests, as the Bank of Russia seeks to restrict transactions on cryptocurrency exchanges as investing in cryptocurrencies has become very popular with local investors.