Crypto ban in Russia can have opposing effects, warns Medvedev, while the opposition rises against the proposal-regulation

Dmitri Medvedev, former President and Prime Minister of Russia, has expressed his concern about the initiative of the Bank of Russia to ban most cryptooperations. The prohibition could lead to the opposite result, the Russian politician warned and joined a choir of opinions against restrictive politics.

Other officials and organizations reject the Central Bank's call to ban cryptocurrency

Central bank of Russia to place a number of crypto-related activities outside of the law Wave of triggered reactions in Moscow. The critics include the Ministry of Finance, which has submitted its own regulatory concept, the State Duma, in which MPs are working on a new crypto law, and the government that has prepared such an timetable for crypto regulation together with different departments.

The position of the central bank has its reasons, Dmitri Medvedev, who is now the deputy chairman of the Security Council of the Russian Federation, admitted in an interview with Russian media. The currency authority has threats to the financial stability of the country and risks for its citizens as key factors for its uncompromising attitude towards crypto. Quoted by TASS, warned Medledew:

honestly, if you try to forbid something, this very often leads to the opposite result.

other Russian officials have recently expressed more specific concerns. Any restrictions on the edition and the circulation of cryptocurrencies would stop the development of the blockchain industry and violate the state's policy to support the IT sector, the Minister of Digital Development, Maxut Shadayev, was cited by the Vedomosti business newspaper. A ban would also lead to a emigration of qualified specialists, he added.

The Russian Association for Electronic Communication ( Raec ) also joined the front of the Bank of Russia and at the same time supported the Ministry of Finance and the Federal Government. A ban would not solve existing problems with fraud and other illegal actions, on the contrary, control would be difficult because the market activities would be shifted to the "gray" sector, the industry association stated. In a statement cited by the Economic News Portal RBC, Raec also said:

The prohibition of the circulation of cryptocurrencies will push Russia to the edge in the development of one of the fastest growing digital markets, which will significantly slow down the innovative development of the country.

According to the RAEC experts, the contribution of the digital markets to the Russian economy in 2020 was 6.7 trillion rubles (over $ 85 million). The preliminary estimates of the association for 2021 indicate that the indicator has risen by 29 % to 8.6 trillion rubles (around $ 110 million to current exchange rates).

In the meantime, the chairman of the State Duma Financial Market Committee, Anatoly Aksakov, has published the idea of legalizing cryptocurrencies as part of the Russian law "on experimental legal regime in the field of digital innovations". This would enable the authorities to investigate how the various elements of the crypto infrastructure work under strict state control, Aksakov explained during a conference that dealt with crypto regulations.

Do you believe that Russia will at some point legalize cryptocurrencies and operations with them? Share your expectations in the comment area below.

lubomir Tassew

lubomir Taskensev is a journalist from the technically experienced Eastern Europe, to the Hitchen's quote: "To be a writer is what I am and not what I do." In addition to crypto, blockchain and fintech, international politics and business are two other sources of inspiration. />

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