Russia Recognizes the Importance of a Local Crypto Assets Market
As sanctions cut off Russia from global finances, Moscow’s motivation to establish a domestic market infrastructure for digital assets grows, a top official at the Russian finance ministry has noted. The comment comes as Russians are losing access to foreign crypto platforms.
Amid
expanding international sanctions over the invasion of Ukraine, Russia has been
turning its attention to cryptocurrencies, while concerns in the West are
growing that the country may use them to circumvent financial restrictions. The
penalties have also affected the crypto space, and Russians are finding it
harder to cash out their digital holdings.
The incentives to build the Russian infrastructure for the cryptocurrency market have increased, as sanctions have led to restrictions on foreign exchanges for Russian nationals. Tass reported the remark was made by Ivan Chebeskov, director of the Financial Policy Department of the Ministry of Finance, during the International Banking Day conference.
The
high-ranking official pointed out that it has become very difficult for
Russians who have invested in cryptocurrencies abroad to withdraw their funds
and convert them into fiat money. Russian citizenship now worries foreign
regulators; money is being blocked, and new accounts are denied. Chebeskov
elaborated and stated:
Therefore,
the motivation for creating the Russian infrastructure for digital currencies,
of course, becomes even greater.
A Russian
crypto market would not only allow Russians to withdraw their assets but also
conduct other transactions. According to the Finance Ministry, a growing number
of them are willing to transfer their coins to Russia. Some trading platforms,
for example, the leading South Korean exchanges, have already restricted access
for Russian users.
The Russian
crypto space remains only partially regulated by the law "On Digital
Financial Assets", which went into force in January 2021. Authorities in
Moscow are still discussing the future of cryptocurrencies, with the Central
Bank of Russia suggesting a blanket ban while most institutions support
Minfin’s proposal to legalise the industry under strict government control.
In February,
the federal government approved a regulatory plan based on the ministry’s
concept. Later that month, the department submitted a new bill "On Digital
Currency" introducing comprehensive rules for the sector. The Tass news agency has reported
that the Ministry of Finance is also working on various aspects of crypto
income taxation policy.
It has also
been gathered from sources that Sberbank, a Russian banking and financial
services company, has launched its own cryptocurrency. The move is to counter
the damage caused by the isolation and being cut out of the global financial
markets due to the US-imposed sanctions.
The licence
has been readily granted by the Russian Central Bank. The Russian Central Bank
seems to have taken the decision rather in a jiffy to accept cryptocurrencies
in the backdrop of the emerging tough situation that is likely to play out for
some time.
In addition
to this, Russia is forcing the largely energy-dependent European countries to
buy oil and natural gas in rubles. Russia is trading oil exports to India with a
new denomination. China is known for its opportunities and is going against the
USD, too. More is undoubtedly on the way in the coming days that will shake the
citadel of the monopoly and dominance of the USD on the global market!
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