A Russian local news source, recently reported that the country’s Central Bank and Federal Security Service (FSB) finally came to an agreement that cryptocurrencies should be outlawed. The two authorities have in the past differed on the approach to crypto regulation; this new development will definitely shape how crypto payments in Russia are regulated going forward.
According to a letter addressed to President Putin, Russia’s Deputy Prime Minister stated that the government had met and agreed on imposing a crypto ban. This comes shortly after the country’s Central Bank made a proposal to change the laws governing blockchain-built tokens.
Despite its strict stance against crypto payments, Russia’s Central Bank completed a blockchain pilot for tokenization this month. The platform will allow external parties to develop hybrid tokens within its ecosystem in a bid to scale investment avenues.
Crypto’s Future in Russia
The new ‘collaborated’ hostility towards crypto payments may largely affect market participation in Russia. FSB proposed that crypto trading for fiat or rubbles should only be done by specially authorized operators. In addition, the KGB successor, is looking for ways to identify all crypto owners in Russia regardless of the value they derive from these assets.
Before this, FSB was still grey on the position to take or whether it is even possible to regulate a decentralized currency like Bitcoin. The authority had even considered a legal structure that would benefit crypto miners. Russia’s Central Bank on the other hand, has been skeptical and stood firm against any crypto-affiliated transactions over time.
Given the new alliance towards digital currency regulation, the Russian might see a sharp decline in the use of cryptocurrencies. However, the government has remained open to blockchain tech innovations with a hands-on approach into tokenization.