The main organization representing participants in the Russian crypto space has lambasted authorities in Moscow for not doing enough to regulate the industry. The criticism comes four years after President Putin directed institutions to legally define the status of digital financial technologies.
Regulators Accused of Failure to Take Russian Crypto Market Out of Shadow
Russian regulatory bodies have been criticized for their actions regarding the cryptocurrency industry in the country. According to Yuri Pripachkin, head of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), their actions are still “half-hearted” and are not aimed at finding a systematic solution for Russia’s state policy in the field of digital assets.
Speaking to the business news portal RBC, Pripachkin reminded about President Vladimir Putin’s order from Oct. 21, 2017, in which the Russian leader mandated the adoption of legislation tailored to define the legal status of digital technologies utilized in the financial sector by July 2018. The president of Racib, formerly known as the Russian Association of Crypto Industry and Blockchain, noted that since Putin issued the order, the crypto market capitalization has increased by 1,250%.
Pripachkin further emphasized that “from the point of view of regulation of the crypto industry 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).”
Cryptocurrency matters in Russia remain only partially regulated after the adoption of the law “On Digital Financial Assets” which went into force in January of this year. While it provides some regulatory clarity regarding these currencies, no rules have been introduced to govern their issuance and circulation in the country’s economy.