The association of illegal activities with cryptocurrency is deep and intrinsic. In many ways, cryptocurrency enables criminal activities due to its anonymous nature. However, the governments also have a role in it to pay since crimes related to crypto are not properly codified in their penal codes. The Bank of Russia seems to be going that way with its new Main Directions for Financial Market Development of the Russian Federation. It’s a formal document about Russia’s plan to create a more accommodating economy for innovation in cryptocurrency and blockchain. However, Russia has also been very clear about its position against using cryptocurrency as a legal tender. It believes that doing so would destabilize the Russian ruble – a fear echoed by Hilary Clinton in the United States recently with respect to the US dollar.
Until now, Russia had no clear laws for the illegal use of digital assets. Other countries like South Korea have also taken this stance with the introduction of punishments and penalties for crypto price manipulators.
The introduction of legal liabilities would mean that crypto exchanges and firms will now have to be more diligent in their companies and reporting requirements. Both have been contentious issues in the crypto communities, with many believing that such measures hinder innovation in the sector. However, the growing crypto-related crime rates have been a worldwide concern, and governments feel that it is the right time to bring the sector within the legal framework. How things work out with the introduction of new federal laws in Russia will determine the future of crypto in the country.
