February 9, 2023

Experts propose ban public cryptocurrencies in Russia

Experts propose ban public cryptocurrencies in Russia

Russian officials have not yet published the final version of the bill on Digital Assets. However, it has recently become known that experts are proposing to ban cryptocurrencies operating in public blockchains.

Head of the State Duma Financial Market CommitteeAnatoly Aksakov said that the experts involved in the discussion of the regulatory act decided to compromise with the Central Bank, which calls for outlawing all virtual currencies due to the inability to control their circulation. Analysts recommend legalizing only digital assets operating on the basis of closed networks, for example, XRP.

According to Daria Nosova from Fintech O2Consulting, all cryptocurrencies issued on public blockchains will be outside the legal field because they will not correspond to the concept of “digital asset”. It is worth noting that the repression will affect the leaders in terms of capitalization and popularity of coins: Bitcoin (BTC) and Ethereum (ETH). Nosova suggests that trading in legal virtual currencies will be regulated along with securities.

An employee of Finam IC Yaroslav Kabakov believes thatThe main difference between allowed and forbidden cryptocurrencies will be that the owners of the former will be able to assert their rights in court, and users of the latter will not have this right. According to Kabakov, the Russians will continue to buy and sell illegal assets on foreign platforms that are outside the jurisdiction of the Russian Federation.

The original version of the law consisted of twosections: on crowdfunding (ICO rules) and on digital financial assets (measures governing coin trading). The document did not distinguish between virtual currencies between public and private and did not impose a ban on any assets. The normative act has been repeatedly amended, so it is too early to sound the alarm. However, given the latest initiative of experts, it can be concluded that the general trend is moving towards the “tightening of nuts”. In this regard, the likelihood that the law will be purely restrictive in nature increases.