The Bank of Russia traditionally opposes the legalization of cryptocurrency transactions on the territory of the Russian Federation, while the ministry was opposed by the Ministry of Finance, which has repeatedly proposed regulatory measures for cryptocurrency assets, rather than a complete blocking.
“Apparently, the Central Bank wants to fully control the directions that it manages, and the easiest way is to take prohibitive measures. Let’s remember what happened to the foreign exchange market: out of the whole multitude of diverse representatives of the industry, at the moment there are only a few forex brokers left, related to large banks. In this case, the actions of the Central Bank can still be understood, since the “kitchens” were really very common, and people lost money, including due to dishonest actions of service providers. Yes, and the threshold for entering the foreign exchange market was initially extremely high, since trading on it is carried out in large lots and most people traded hundredths and thousandths of lots and it was impossible to really bring such volumes to the market.However, the cryptocurrency market is the complete opposite of the currency market: digital assets,as a rule, they are cheap and you can buy them for any volume, which means that there is a proper basis for honest interaction between intermediaries and customers,” says Chen Limin, Chief Financial Officer and Head of Trading at ICB Fund.
Perhaps the Central Bank has concerns that cryptocurrencies will become more attractive investment instruments than stocks, but they are unlikely to have a serious basis. The fact is that Russian (and not only) stocks attract the attention of people who want to form long-term savings, whose focus is primarily on protecting funds and only then on generating profitability. While cryptocurrencies are about irrational risk in exchange for a chance to earn 100%+ on a coin. In other words, these are initially different groups of people and global changes in terms of financial markets and the outflow of funds from securities should not be expected. Only a handful of enthusiasts are ready to accept cryptocurrency for payment, so cryptocurrencies and the ruble cannot replace.
“Yes, cryptocurrencies create opportunities for money laundering, but the ruble is also used quite actively for these purposes. To deprive unscrupulous people of this opportunity, it is necessary to create control mechanisms, as they do, for example, in the United States, where the tax service is known all over the world for its severity rather than destroy the available instruments for financing promising technology projects.Creating adequate conditions for the honest work of the players in the field will be beneficial for both businesses and investors, who will receive legislative protection and will no longer be forced to work with firms with an incomprehensible status, “sums up Chen Limin .