Russia Lawmakers Seek Regulatory Framework for Crypto, Deem Industry Dangerous

7 October 2021 | Updated: 7 October 2021

According to new reports, the lower house of the Federal Assembly of Russia, State Duma, described cryptocurrency as a “dangerous financial tool” for private investors. That said, the government arm recently announced plans to implement a regulatory framework around trading cryptos.

Commenting on the matter, Anatoly Aksakov—Head of the Duma Committee on the Financial Market—argued that while cryptocurrencies produce significant profits for some investors, they can pose significant risks to their users. For this reason, Russian lawmakers plan to implement specific rules to the industry, arguing that:

“Digital assets are the topic of our close attention, and here we will look at how to maximally protect our citizens when investing in digital currencies and digital assets because there is a new tool, and it is quite difficult for an unskilled investor.

We certainly need to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies.”

However, a top executive at the Institute of Applied Economic Research, Alexander Abramov, has criticized the intended move by the lawmakers. Abramov opined that digital assets have provided numerous benefits for the Western markets in recent years. He also argued that cryptocurrencies have become a solid competition to centralized government monetary projects, which explains the inhibition by governments.

Recently, founder of Alor Group Anatoly Gavrilenko noted that even if authorities placed a ban on cryptos, the public would always find ways to acquire and use them, stating that:

“Cryptocurrency is a certain symbol of freedom; financial freedom, it is a signal to all regulators that there is no need to bring people into a corner. People will always come up with something that will force them to bypass the bans.”

Apex Bank in Russia Against Crypto

Nonetheless, Russia’s central bank has expressed its displeasure with the asset class. In June, Chief of Russia’s Central Bank Elvira Nabiullina asserted that “investing in crypto is more dangerous than any other strategy.” She added that:

“Speculative crypto assets are surely the most dangerous strategies of all. The Central Bank never gives advice, where to invest, but in this particular case – here [one] should definitely not [invest].”

With all this, speculators worry that the Russian government could adopt an unfriendly stance on crypto soon.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.