President of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (RACIB) Yuri Pripachkin criticized the actions of the regulatory bodies of the Russian Federation in the field of the cryptoindustry. In his opinion, they are still “half-hearted” and in no way aimed at a systematic solution of state policy in the field of digital assets.
In an interview with RBC-Crypto, Pripachkin recalled the order of Russian President Vladimir Putin dated October 21, 2017, in which the head of state instructed to amend the legislation aimed at defining the concepts and status of digital technologies used in the financial sector before July 1, 2018 … The head of RACIB noted that the order was given by Putin when the capitalization of the digital asset market was about $ 200 billion. Four years later, the capitalization of the crypto market exceeded $ 2.7 trillion (an increase of 1250%).
“However, from the point of view of the regulation of the cryptoindustry in the Russian Federation, according to its professional representatives, absolutely nothing has been done to bring out of the shadow the domestic segment of this market (accounting for more than 10% of the global one), with turnovers comparable to the annual federal budget revenues ( $ 270 billion) “, – said Pripachkin.
According to Pripachkin, on the one hand, cryptocurrency in Russia is now legalized, on the other hand, the rules for its release and circulation have not been determined. At the same time, the concept of “smart contract”, which is the key one, is still not mentioned either in the adopted laws or in the draft laws that are under consideration by the legislature.
The law on digital financial assets, despite the absence of a direct ban on mining, does not define this type of activity in any way. At the same time, so far, neither the requirements, nor the procedure for registering economic entities carrying out such activities, nor the procedure for their taxation have been specified, Pripachkin emphasized.
“There are no positive results for the digital industry on the rest of the President’s instructions. Despite the regulatory sandbox formed in 2018, due to the irreconcilable position of the Bank of Russia towards cryptocurrencies, not a single public blockchain project submitted for testing received approval from the country’s main financial regulator, “he added.
Russian users, due to the “slowness and opacity” of the current legislation in the field of cryptocurrency regulation, are forced to turn resources outside the national economy in amounts equivalent to $ 250 billion (~ 18 trillion rubles), which is comparable to the total revenues of the entire federal budget of Russia for the entire 2020 year (20 trillion rubles), noted the head of RACIB.
On October 21, the position of the Bank of Russia regarding digital assets was criticized by Russian billionaire Oleg Deripaska. In his opinion, the Central Bank allegedly “infantilely closes its eyes to the growing cryptocurrency market.”
In January of this year, the law “On digital financial assets” came into force. It defines cryptocurrency, but prohibits its use in the country to pay for goods and services. Also, advertising of payments with digital money falls under the ban. In mid-September, the Bank of Russia announced that it plans to expand the ban on the use of cryptocurrencies.
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