Russia split between regulating or banning crypto

Russian media has spread reports that the government is looking to either ban cryptocurrencies, in a fashion similar to China, or seek to introduce some regulation that would allow crypto exchanges to operate in the country.

The idea of prohibiting cryptocurrencies is backed at the highest level of government with Russian president Vladimir Putin reflecting the central bank’s sentiment and arguing that such currencies bear a high degree of risk for ordinary investors and consumers.

According to a, the government may face two choices, one of which would involve legalization of crypto exchanges.

While a complete ban could be easy on the face of it, it would seem to have much deeper implications, such as the proliferation of illegal operations.

On the other hand, Interfax feels confident that regulating crypto exchanges could lead to a transparent and understandable regulatory framework that would benefit the government as it would impose tax on any transactions carried through such exchanges.

In fact, the report stated that taxation would be much simpler than trying to apprehend culprits.

Russian Parliament Committee on Financial Markets chair Anatoly Aksakov is a dissident voice in government when it comes to cryptocurrencies.

He is convinced that the right way forward for the country is to regulate the assets rather than outright ban them. Previous reports by various parties have stated that allowing cryptocurrencies could enable Russia to extricate itself from any dependency on the US dollar or, at the very least, reduce it.

At this point, Russia is not overly fond of private cryptocurrencies. Rather, the central bank is interested in launching a central bank digital currency rubel.

The country previously prohibited mutual funds from investing in Bitcoin, although there is no mutual fund to date that has done so.

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Updated: 12/17/2021 — 11:00