A quick crypto market analysis will show that Russia’s local market accounts for 10% of the global crypto market. With positive Blockchain Technology news on Bitcoin (BTC’s value, Russian citizens and government officials have been considering crypto mining with associated gas. However, despite these developments, Vladimir Putin’s internet ombudsman Dmitry Marinichev is skeptical and pessimistic about improved regulation of Decentralized finance (DeFi) and cryptocurrency.
Marinichev was reported saying at the Blockchain Life 2021 event that Russian regulations on digital assets would remain vague compared to Cryptocurrency Regulation News in different countries. As noted by many pro-cryptocurrency experts like the RACIB chief Yury Pripachkin, the only existing crypto law in the country is limited.
The said law “On Digital Financial Assets” focuses only on state-backed companies, and big businesses-it merely defines cryptocurrency. There is no mention or focus on broader applications of Blockchain in industry, including BaaS – Blockchain-as-a-Service, crypto airdrops, and crypto exchanges.
Marchinichev believes the vague approach on the regulation of Use of Blockchain in FinTech will likely continue in the future. According to him, the government doesn’t want Russian citizens to earn with Blockchain Applications. This goes in tandem with Russia’s insistence on not using Altcoins and Stablecoins like Bitcoin Cash (BCH), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), and Binance Coin (BNB) for transactions.
With the Bank of Russia taking a negative stance on cryptocurrencies, experts believe Russia will likely not have a local registered exchange. This leaves citizens to access only to international exchanges like Binance to buy and hold crypto assets like Polkadot (DOT), Stellar (XLM), ERC20 Tokens, and NFT – Non-Fungible Tokens. So, while Russians can use crypto hardware wallets and Blockchain Mobile Apps, the lack of regulation is bound to limit their choices of exchanges.