A prominent political figure believes that inadequate regulation of cryptocurrencies in Russia is “eroding the government’s endeavors to combat” Western economic sanctions. According to the media source RBC, Andrei Lugovoy, the First Deputy Chairman of the State Duma’s Committee on Security and Anti-Corruption, described Russian cryptocurrency policy as ranging from “poor to abhorrent.”
Legislator Expresses Frustration Over Inadequate Russian Cryptocurrency Policy
Lugovoy addressed a cryptocurrency forum arranged by the same media outlet, RBC. The publication asserted that speakers at the event presented “several noteworthy statements and evaluations of the present legal status of the mining and digital assets industry in Russia.”
Perhaps none of the assessments were as remarkable as Lugovoy’s, who strongly criticized Moscow’s lack of action regarding cryptocurrency regulation. The legislator specifically called out the various government working groups responsible for formulating crypto regulations, comprising influential politicians, ministry officials, and decision-makers from the Central Bank.
Andrei Lugovoy, the First Deputy Chairman of the State Duma’s Committee on Security and Anti-Corruption (second from left), speaking earlier this year. (Source: LDPR/YouTube)
Russian Regulation: Still Distant on the Horizon?
In an effort to resolve the longstanding deadlock between the ministries of finance, trade, and energy and the crypto-skeptical Central Bank, Moscow established these groups.
The ministries advocate for the “legalization” of the Russian crypto sector, encompassing regulations for crypto miners, controlled exchanges, and anti-money laundering measures. They believe that legalizing industrial crypto mining will contribute to state revenue through taxation and foster growth in the technology and financial sectors. Many major Russian companies are now venturing into “digital asset” and “NFT” trading platforms.
Contrastingly, the Central Bank staunchly opposes crypto in almost all forms, advocating for lawmakers to prioritize its expedited digital ruble project.
Lugovoy criticized the impasse, noting that the working groups have conducted numerous meetings but have made “no progress in introducing the necessary legislation.” He emphasized that Russian businesses have been grappling with challenges in settling transactions with foreign partners for several years, suggesting that cryptocurrency could offer a solution by facilitating mutual settlements for these firms.