Crypto Remains Unregulated In Russia — Lots Of Talks But No Action

In November end, news came up that crypto users from Russia under the grey zone for the operation could stand at a risk stage since the nation’s financial authorities had contacted the forces to perform an outlaw over the digital asset used instrument payments.

After that, the country’s interior ministry shows a confirmation upon the rumors regarding the track to come up with a legally operated framework over digital assets confiscation that could be released within 2021. Apart from that, Russia’s Federal Financial Monitoring Service agency head also spoke in front of the parliament regarding the legalizing prospects related to cryptocurrencies’ usage.

Are these moves an indicator that the government is putting a thought over the digital asset, and is it perceived to be a threat for the Russian community of crypto users?

No legal status upon the tender:

As per a local Izvestia report, it was out that the Federal Financial Monitoring Service and Russian Central Bank are drafting legislation over the crypto asset usage ban to buy any goods or services online. Any details regarding the draft were not out regarding the potential mechanism, or one did not disclose any information regarding violation punishment. As per the updates, any comment hasn’t been made officially by the Finance Ministry and Federal Financial Monitoring Service. 

Seeing other jurisdictions, legislators from Russia face a struggle in defining a legal or illegal status for the usage of digital assets from 2017. As per the notes from yahoo Bitcoin Revolution, several petitions came from the trade associations regarding legislation of crypto. At present, any official statement over the mining of crypto is not present by the Russian government.

The community of Crypto in Russia: “Make it a harness, not a banned one!”

Among several crypto entrepreneurs in Russia, it is rumored that much would want to see a well-defined set of regulations than any limbo prevailing over it wherein the industry is operating currently. They doubt that any such ban with a blanket on payment involving cryptocurrency would be enough to solve the regulator’s problems. 

The prohibitive series of measures under the working process in different Russian government departments predict the product’s individualistic role players that are not interested in defining the new asset class. Even due to mechanisms lacking a defined and detailed enforcement, the initiatives may consume a reasonable amount of time to enter the materializing state or even not stand at the fruition stage.