Cryptocurrency investors would be forced to leave Russia if the Bank of Russia’s proposed bills on banning the circulation of cryptocurrencies and penalties for violations mentioned in the media are approved. ForkLog said this, citing experts surveyed.<\/p>\n
As of the time of writing, none of the documents has been published publicly and their content is not definitively known. All comments below are given with this caveat in mind. <\/p>\n<\/div>\n
The main issue that puzzled lawyers about the widely circulated information in the media is that the Bank of Russia does not have the right of legislative initiative.<\/p>\n
\n\u201cThe Bank of Russia does not draft bills; that is the job of the State Duma. The Bank can only offer its opinion, which deputies are free not to accept,\u201d \u2013 explained Andrey Tugarin, managing partner of GMT Legal.<\/p>\n<\/blockquote>\n
Currently, Russia does not have a legal framework that differentiates digital currencies into categories, including \u201cprivate.\u201d<\/p>\n
\n\u201cWhat exactly falls under the category of private digital currencies, in the regulator\u2019s view, is very hard to say, and for now it looks like an imprecise expression of the regulator\u2019s opinion,\u201d said Tugarin.<\/p>\n<\/blockquote>\n
The central bank’s initiative, presumably, may be tied to a desire to protect the digital ruble preparing for launch<\/a>.<\/p>\n
\n\u201cBut by its nature the digital ruble has nothing to do with crypto and should be regulated separately,\u201d emphasized a lawyer.<\/p>\n<\/blockquote>\n
Andrey Tugarin reminded that the possibility of issuing and circulating digital currencies is enshrined in the law \u201cOn Digital Financial Assets.\u201d<\/p>\n
Unclear formulations were also raised by CEO Sergei Mendelyev of Indefibank.<\/p>\n
\n\u201cWe still need to understand what is meant by \u2018private digital currencies\u2019. If we mean the so\u2011called shitcoins like Phoenician cyfrons, one can only support the Bank of Russia. And if here we get truly respectable tokens from projects and startups, well, we will trade them outside Russian jurisdiction. I still don\u2019t know where in Moscow you can buy COMP tokens for cash. What \u2018issuing crypto on the territory\u2019 means will also be funny to read,\u201d he told ForkLog.<\/p>\n<\/blockquote>\n
Architect and founder of the project \u201cRobonomics\u201d Sergei Lonshakov stressed that it all depends on how thoroughly the Bank\u2019s rules are applied.<\/p>\n
\n\u201cIf participating in developing a protocol that uses its own token is treated as participation in issuance, then all the capable blockchain developers who work on dozens of international projects will flee Russia. And the fact that one cannot, for example, create tokens on behalf of a Russian legal entity, \u2014 well, fine,\u201d he said.<\/p>\n<\/blockquote>\n
The Bank of Russia does not seem inclined to abandon the idea of a complete ban on crypto, according to expert Efim Kazantsev of the Moscow Digital School. And since \u201cban it all and right away\u201d could not be achieved by the regulator, it will try to slice sectors until any cryptocurrency is banned for all subjects of the Russian Federation.<\/p>\n
\n\u201cThis initiative is ruinous for Russia\u2019s crypto sphere. If we want to create conditions for the development of crypto projects, such bills must not be allowed,\u201d said the expert.<\/p>\n<\/blockquote>\n
Experts also point to the confrontation between the Bank of Russia and the Finance Ministry on crypto regulation \u2014 the ministry advocates regulation of the industry. Finance Minister Anton Siluanov compared the idea of banning crypto assets with banning the Internet<\/a> and said that this is impossible.<\/p>\n
\n\u201cMuch of the financial and economic bloc has already openly signalled that banning crypto in Russia is not in anyone\u2019s interest; on the contrary, it deprives the country of prestige and budget revenues. And only from Neglinnaya do calls to: \u2018Ban it!\u2019, \u2018We won\u2019t allow it!\u2019, \u2018Threat to financial stability\u2019 and other scare stories keep echoing,\u201d said Mikhail Bystrov, partner and head of FinTech & Crypto practice at law firm DRC.<\/p>\n<\/blockquote>\n
In his view, the maximum that the Bank could achieve is a ban on using cryptocurrencies as an official means of payment in the Russian Federation. On this issue, the Finance Ministry agrees with the regulator<\/a>.<\/p>\n