The Bank of Russia is unwilling to accept the free circulation of cryptocurrencies within the local economy. Lieutenant Governor Vladimir Chistyukhin announced that upcoming regulations would allow buying Bitcoin and other cryptocurrencies through foreign platforms.
Amid imprecise positions, the Russian government will allow citizens to acquire cryptocurrencies. Some officials linked to the banking environment support digital assets, allowing people to own them. Besides, the outlook would not be entirely free with legislation banning, or not, crypto transactions.
The Bank of Russia has adopted a rigid stance on cryptocurrencies and banned some leading banks from offering investment services involving them. They have argued that those services do not meet the interests of investors and involve high risks.
In July, the financial entity recommended that asset managers exclude cryptocurrencies from exposure in Mutual Funds. Curiously, the local news agency RBC reported that Russia has no Mutual Funds with crypto exposure. However, the government has not banned them formally.
Artem Deev, head of the Analysis Department at Amarkets, said that the Eurasian country only has one exchange-traded fund (ETF). However, that organization does not allow the trade of cryptocurrencies since it considers them risky.
Upcoming Regulations on the Use and Acquisition of Cryptocurrencies
It is still unclear how the Russian government will regulate the cryptocurrency environment. Although there is some uncertainty, it seems that the authorities could give room to the flow of that market.
The authorities have stated that cryptocurrencies would have a chance to move in the Russian economy, by the outlook remains unclear. Russia will allow acquiring crypto assets, but that would not be very prominent domestically.
The Bank of Russia is willing to deal with cryptocurrencies but does not want them to circulate freely within the local economy. The government and financial authorities seek to create a scenario to implement regulations for cryptocurrencies.
According to the data provided, the government would only accept cryptocurrencies through international infrastructures. In that way, they would restrict their use within the domestic environment, but without banning citizens from owning crypto assets.
In that regard, Lieutenant Governor Vladimir Chistyukhin stated his opinion on the arrival of cryptocurrencies in Russia. He disclosed that upcoming regulations would allow citizens access to Bitcoin and other cryptocurrencies through foreign platforms.
Uncertainty about the Outlook of the Cryptocurrency Market in Russia
Despite various opinions, there is no defined scenario where the cryptocurrency market can be in Russia. Meanwhile, the authorities will attempt to formalize a regulatory framework that could give crypto assets the go-ahead. Of course, that would consider the points of view various officials have already expressed.
The Russian government said it would allow acquiring those assets, but some representatives have not yet agreed on a position. While some directly support or do not the inclusion of cryptocurrencies in the country, Anatoly Aksakov does not offer a straight answer.
The chairman of the Financial Markets Committee of the Russian State Duma thinks it is better to wait for a related voting process. He said that the government would allow or ban transactions with cryptocurrencies in the Eurasian nation next year.
By Alexander Salazar
