The head of RACIB stated that Russia has “absolutely no” regulation of cryptocurrencies

Although Russia Pass its first cryptocurrency law According to a local industry advocate, as of January 2021, the country’s cryptocurrency market is still largely unregulated and there are many uncertainties.

Yury Pripachkin, head of the Russian Association for Cryptoeconomics, Artificial Intelligence and Blockchain (RACIB), believes that the existing Russian encryption regulations are nothing more than “half measures” and have nothing to do with system solutions. .

in a interview Pripachkin and local news agency Royal Bank of Canada mentioned Russian President Vladimir Putin Issue multiple continuous tasks Adopting cryptocurrency regulation in the past four years. The executive emphasized that the total market value of cryptocurrencies has soared from approximately US$200 billion in 2017 to the current US$2.7 trillion, but local lawmakers have basically taken no measures to capture this value:

“Russia has taken absolutely no measures to regulate the local cryptocurrency market, which accounts for 10% of the global cryptocurrency market,” Pripachkin said. He added that the size of the Russian cryptocurrency market is comparable to the annual federal budget revenue of $270 billion.

Pripachkin claimed that Russia’s “digital financial asset” encryption law provides a legal basis for encryption in a broad sense, but it does not define major industry terms such as smart contracts, nor does it regulate encryption mining, issuance, and taxation activities.

The head of RACIB is not alone and believes that the Russian cryptocurrency industry is largely a gray area. Anna Maximenko, legal counsel at the international law firm Debevoise & Plimpton, believes that Russia’s current encryption regulations are “limited to the definition of cryptocurrency” and other aspects, such as the prohibition of encrypted payments.

“Other aspects of cryptocurrency turnover, including exchanges and requirements for investors, are currently not regulated,” Maksimenko told Cointelegraph. According to experts, the lack of supervision has resulted in no crypto exchange registration in Russia, and residents can still use the services of foreign crypto exchanges such as Binance, Huobi Global, and Paxful.

Related: Bank of Russia assesses Bitcoin holdings because $36B left the bank

“Considering the negative stance of Russian banks on cryptocurrencies, it is very likely that there will not be a Russian cryptocurrency exchange, and foreign cryptocurrency exchanges will stay in a gray area,” Maksimenko said.

When the news came out, the Russian government showed increasing interest in cryptocurrencies such as Bitcoin (Bitcoin), with some ministries It is proposed to use associated gas to mine cryptocurrency.

However, when it comes to the interests of its residents, the Russian government is still skeptical of Bitcoin, and the Bank of Russia hopes Limit trading to cryptocurrency exchanges As Crypto investment has become very popular Among local investors.