The deputy chairman of the Security Council of the Russian Federation, Dmitry Medvedev, has warned that a move to prohibit crypto in the country could backfire.
Medvedev voiced his concern following the proposal of a blanket ban on all cryptocurrency activity in the country by the Central Bank of Russia (CBR) earlier this month. This would halt all Bitcoin or Altcoin related activities in the country, such as crypto mining, crypto trading, and more. Additionally, the CBR also proposed a punishment for violating the already existing ban on using cryptocurrencies as a mode of payment in Russia.
Medvedev Warns of a Backfire With Crypto Ban
Dmitry Medvedev opposed the ban stating that the ban on crypto was only to protect the CBR’s own interests. The former Russian president and prime minister also pointed out that such an action would only drive crypto-related activities underground. There are reportedly close to 17 million Russian citizens who own blockchain wallets making it too late to ban the sector altogether without expecting any adverse economic effects.
Growing Opposition to the Ban
Other Russian officials too expressed their dissatisfaction and Russia’s Ministry of Finance was quick to discourage it. The head of the financial policy department, Ivan Chebeskov, instead suggested regulating crypto activities. He added that regulation would be sufficient to protect Russia’s economy from any threat through cryptocurrency.
Meanwhile, the Russian Association for Electronic Communications (RAEC) also criticized the proposal saying that this would not solve their CBR’s concerns. Instead, the association stated that such a move would only make it harder for banks to detect crypto-related fraudulent activities.