Russian regulators have come under fire for their actions regarding the cryptocurrency industry in the country. According to Yuri Pripachkin, head of the Russian Association for Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), their actions are still “half-hearted” and not aimed at finding a systematic solution to Russian state policy in the field of digital assets. Regulators accused of failing to bring Russian crypto market out of the shadows
Pripachkin further pointed out that “from the point of view of regulating the crypto industry in the Russian Federation, according to its professional representatives, absolutely nothing has been done to bring the domestic segment of this market (representing more than 10% of the world total), with turnover comparable to the annual revenues of the federal budget (270 billion dollars).
Speaking to the RBC business news portal, Pripachkin recalled President Vladimir Putin’s order of October 21, 2017, in which the Russian leader mandated the adoption of appropriate legislation to define the legal status of the digital technologies used. in the financial sector by July 2018. The Chairman of Racib, formerly known as the Russian Crypto and Blockchain Industry Association, noted that since Putin issued the order, the capitalization The crypto market rose by 1,250%.
Cryptocurrency issues in Russia remain only partially regulated after the passage of the “Digital Financial Assets” law which came into effect in January of this year. While it provides some regulatory clarity regarding these currencies, no rules have been introduced to govern their issuance and circulation in the country’s economy.
Pripachkin pointed out that the term “smart contract” is nowhere to be found, neither in the legislation already approved, nor in the bills currently under consideration. Then there is crypto mining, which, although not banned in Russia, remains unregulated. The Racib official added that there had been no progress on any of Putin’s other instructions and provided another example:
Despite the establishment of a regulatory sandbox in 2018, due to the Bank of Russia’s irreconcilable stance on cryptocurrencies, no public blockchain project submitted for testing received the l approval from the country’s main financial regulator.
The Central Bank of Russia (CBR) has remained stubbornly opposed to the legalization of cryptocurrencies such as bitcoin in Russia. The monetary authority considers them to be monetary substitutes prohibited by current Russian law. Earlier this year, the bank advised exchanges against listing financial instruments linked to crypto assets. This week, its governor Elvira Nabiullina said the CBR was not ready to allow bitcoin ETFs to be traded.
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In a situation determined by insufficient and opaque legislation, Russian cryptocurrency users find themselves forced to export funds worth an estimated 18 trillion rubles ($ 255 billion) out of the Russian economy , remarked Pripachkin. This is comparable to the total revenue of the Russian federal budget for the whole of 2020, which is around 20 trillion rubles, the Racib chief said.
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