Despite the fact that Russia has recently adopted an important cryptocurrency project, the Central Bank continues to treat transactions in this area of business as illegal.
Sergei Swiecov, the first deputy governor of the Bank of Russia, expressed the bank’s negative stance on cryptocurrency investments. He compared it to pyramid schemes and gambling. He also made it clear that the Bank of Russia does not consider the purchase of cryptocurrencies as an investment.
“The Bank of Russia, as a regulator, holds the position that purchasing digital assets is not an investment. It is more like a pyramid scheme or a game of roulette and does not apply to the financial market. Neither the government nor financial intermediaries should encourage citizens to acquire these types of assets. “
“We do not support investments in this criminal sector, they are prohibited by the Russian constitution and are subject to criminal liability.”
– said Sergei Swiecov.
The officer also noted that no Central Bank in the world supports cryptocurrencies. According to many Russian officials, digital assets such as Bitcoin (BTC) are often used for money laundering by various organized crime groups.
“Cryptocurrencies are also used to circumvent anti-money laundering laws. We therefore absolutely do not support citizen investment in this criminal industry. “
It will take some time to implement clear rules
As we mentioned in our last article on regulatory changes in Russia, on July 22, Russian lawmakers adopted the important Digital Asset Act, abbreviated as DFA, but this is only the first part of the new law that covers the basic assumptions. Invasive changes are to come with the next part of the project entitled “About digital currency”.
Thus, the law on digital assets mainly focuses on the prohibition of the use of cryptocurrency as a means of payment. It does not provide information on the legality of investing in digital assets. Until the introduction of the full version of the law on digital currency, the Central Bank remains the main regulator of regulations.
In March 2020, the bank argued that the DFA Act prohibits the emission and circulation of cryptocurrencies in Russia. Ultimately, however, the act turned out to be more industry-friendly. In February 2020, the Central Bank issued a set of rules on suspicious transactions, classifying any transaction carried out with cryptocurrencies as a potential money laundering attempt.