DeutschLike Switzerland, Russia is one of the countries that showed interest in blockchain technology relatively early on. Digital currencies such as Bitcoin were also “under discussion” on the state side, as cryptocurrencies were seen as a possible way to circumvent political sanctions from abroad. And that’s not all: Some time ago, there were reports that, among other things, the central bank of the huge country was considering what advantages its own token – often referred to in the media as the crypto-ruble – could offer. On the citizen’s side, it is, as expected, mainly the younger generation that is dealing with the topic. As far as the state token is concerned, there were several supporters of possible measures by the state. So Bitcoin and Russia go well together.
Demands for State Stablecoins Have so Far Gone Unheeded
This included, for example, a former energy minister of the country, who spoke out in interviews in favor of introducing a stablecoin linked to the oil price. Statements by the Russian Central Bank Governor Elvira Nabiullina also followed as early as May of this year. Russia’s currency guardian did not express any aversion to plans for a state coin. However, these own considerations reflect the position of politics and the Kremlin towards cryptocurrencies (especially Bitcoin). President Putin, for example, has repeatedly called for clear and up-to-date regulation of the rapidly growing industry in recent years. The central bank sees a large number of application examples. However, the government has a difficult relationship with decentralized digital currencies, despite the interest of the population, the numerous miners and blockchain companies in the country.
State Institutions Want to Develop a New Legal Situation
In November 2019, several reports from Moscow followed, which are unlikely to be met with enthusiasm by crypto fans. It does not seem likely at the moment that a project like the “cryptoruble” will start anytime soon. Instead, politicians are increasingly addressing the question of the legal treatment of digital currencies and, in particular, BTC. An important step seems to have been taken here, which does not necessarily make crypto investors happy. Although the future equal treatment of crypto investments and traditional asset classes by the country’s legislature is a welcome step, the policy is pursuing a different goal through a planned bill.
The Ministry of the Interior, in cooperation with other authorities, wants to gain access to crypto assets as soon as possible through legal changes. The draft law should be available by December 31, 2021 at the latest. The starting point should be the legal classification of Bitcoin and Altcoins. Then the relationship between Russia and Bitcoin will fundamentally change.
Confiscations should be Feasible in the Future
The government wants to achieve through equalization that assets in digital currencies can also be confiscated by authorities. However, this only concerns assets that were not acquired legally. According to current reports, the Supreme Court of Russia is also involved. The policy now wants to crack down on cybercriminals more than before and aggressively prevent money laundering. However, it is unclear how the likely legal corrections will affect the interests of reputable investors, crypto exchanges and ICOs.
Government Wants to Clearly Regulate the Crypto Market
So far, authorities have only had access options under very difficult conditions due to technical complications. The reason is the decentralized operation of many tokens and the anonymous transaction execution. The policy could have these encryptions in mind. In this way, the government could ensure that cryptocurrencies finally emerge from the twilight of the gray market from 2022 (or later). Until then, according to numerous industry experts, the central bank is working to forge stronger ties with crypto exchanges. The authority probably hopes that this will give it better opportunities to freeze funds in wallets and on exchange accounts.
Russia and Bitcoin: Industry Experts Fear Massive Cuts after 2021
Even without these desired legal framework conditions, the huge Russia is a central market for the crypto industry. For many exchanges, it has long been one of the countries with the highest trading volumes. Activity in the country is constantly increasing, which is why Russia is even referred to in many analyzes as one of the key key markets – not only in Europe. Speculation about veritable waves of confiscation after the “legal turnaround” from 2021 will initially change little in the current developments. However, it is also correct that Russian policy is not known for doing things by halves, so to speak. Should the involved authorities agree on a uniform catalog of measures, this could have far-reaching consequences for all participants in the crypto market in the country. Risks for the Russia location also arise from this. Interested companies could initially refrain from setting up new companies and locating in the country.
Part 1: Argentina and Bitcoin
Part 2: China and Bitcoin
Part 4: Germany and Bitcoin
Part 5: USA and Bitcoin
