Russian Regulators Hammer Bitcoin Holders Amid Ruble’s Descent

Key Takeaways

  • The Russian government is about to impose harsh regulatory restrictions on cryptocurrencies starting from 2021.
  • Meanwhile, the country is gearing up for the launch of its digital ruble, issued and controlled by the central bank.
  • The measures may be aimed towards supporting the national currency, which suffers from geopolitical uncertainty and U.S. sanctions.

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Russia approaches a critical milestone regarding the regulation of cryptocurrencies and digital assets. Some of the essential documents have been accepted, and the new rules will start taking place from 2021. Unfortunately, this means a bleak future for the country’s crypto community.

According to the latest updates from the central bank, crypto investors will face severe restrictions on the amount of crypto they can purchase and how they can use it. The government officials don’t want citizens to be involved in crypto, stating that it’s mostly used for illicit activities.

Meanwhile, Russia is considering the launch of its digital ruble to enter the currency race. Hence, the country’s regulatory landscape is expected to favor the national digital currency instead of crypto.

The Government’s Position Is Still Not Clear Enough

The Russian government spent around 2.5 years figuring out how it would treat cryptocurrencies before Vladimir Putin finally signed the bill on Digital financial assets (DFAs) in July 2020. 

Despite spending considerable time on the development of the bill, it turned out to be half-baked.

There’s little clarity in regards to what should be considered as a digital asset, for example. Some definitions fall outside of conventions, and some statements contradict with other regulatory acts. Lawyers, who analyzed the bill, claim that the government’s still somewhat undecided on its policy towards crypto and digital assets.

Still, the government doesn’t see crypto as an alternative to state money. Russians won’t be allowed to spend crypto on…

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