Russia to ban crypto transactions within its border

Russia to ban crypto transactions within its border

With an eye to banning any transactions using crypto within the country’s frontier, lawmakers of Russia has come with some draft bills regulating digital assets earlier this month. Many a protest letters has caught sight of lawmakers after the introduction of these bills. The Russian economy would lose up to $10 billion in taxes once the regulation is passed. But on the off chance crypto industry runs legally, they would be able to pay it.

According to one of the bills, local crypto businesses will have to leave for other jurisdictions as they are prohibited to operate transactions within country’s border. Allowing young tech talent to work abroad and cutting separating country from the global tech infrastructure, Russia is going to lose the scope to keep up technological leadership.

This letter being referenced in the Telegram channel of Elina Sidorenko was dispatched to the parliament by the Chamber of Commerce and Industry, a non-profit organization promotes the growth of the Russian economy and its integration into the world economic system and provides favorable conditions for the advancement of all business sectors.

The ban on any economic activities with crypto contradicts Russia’s policy on the digitalization of the economy got boomed through the letter. Pointing out the new regulation would jeopardize the constitutional rights of Russians, the expert council for digital economy and blockchain of Duma, a Russian assembly with advisory or legislative functions, dispatched a letter to Putin’s council. The purpose behind sending the letter was to safeguard the rights of entrepreneurs. The letter said something bitter about the draconian sanctions saying it may freeze digital economy growth in Russia.

Another letter was sent by the International Digital Economy Organization saying to recognize crypto-related enterprises as legal and to ban transactions related to money laundering and crimes. The situation is faltering as the regulation is not yet ready to be adopted. The draft package of ban on crypto has already passed through a first hearing in Duma. So the new bill is waiting for second hearing. Some government officials want the draft to be rejected.

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