A Russian government official informed reporters that the country would not be banning the purchase of cryptocurrencies by citizens on foreign exchanges outside the Russian Federation.
No Blanket Ban On Cryptos
At the “Digitalization of Financial Markets” lecture at MGIMO on Tuesday, Deputy Finance Minister Alexei Moiseev claimed that the Russian Federation is not planning on following China’s path of action in banning all crypto activities. The lecture invited plenty of questions from students regarding the state of cryptocurrencies in the country. Moiseev also stated that he believes that the citizen’s rights to buy and use wallets outside the Russian Federation will not be changed.
However, he confirmed that cryptocurrencies would not be accepted as a means of payment in Russia to avoid losing control of the money supply. He reiterated the government’s claim that accepting BTC as an official currency could potentially harm the country’s financial and economic system.
"Of course, a Russian citizen can have a wallet open outside the Russian Federation, but it is operations within the Russian Federation that they will be subject to bans, I think, for the entire foreseeable future, due to the fact that this is financial sovereignty."
Economic Concerns Over Crypto In Russia
Purchasing crypto in the country is not allowed because of Russia’s law on digital financial assets that deems it illegal to issue digital currencies that are not backed by real assets on established Russian financial platforms. The deputy finance minister also called out lawmakers to properly define digital currencies and categorize blockchain technology in the Russian civil code.
Many similarities between the countries of China and Russia had led the crypto community to wonder if Russia might also decide on a blanket ban on cryptocurrencies like China. And even though Russia appears to be just as concerned as China about the financial risks of a decentralized monetary system, they have held back from the no-crypto policy of the Asian superpower.
Russian CBDC And Legislative Restrictions
Even though the sale and use of cryptocurrencies are prohibited in the country, few Russian officials are warming up to the idea of a central bank digital currency (CBDC). This is because they believe that the digital ruble will not pose the same financial risk as regular cryptos like BTC. In fact, according to the Chairman of the Russian State Duma Committee on Financial Markets, Anatoly Aksakov stated that a Russian CBDC might become a reality by 2024.
Aksakov has also pointed out that the billions of dollars currently being spent on buying cryptocurrencies can be channeled into great profitability, preferably through legislative frameworks. The decision to bring in legislative restrictions was inspired by a motive to protect private investors.
“We need to prescribe in the legislation the norms that will protect an unqualified investor in ill-considered investments in digital currencies."
