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Russian Govt Official: Crypto Regulation is the International Issue

Last updated: | 1 min read

Russia should not “run ahead” of other countries and take the role of a global trendsetter in crypto regulation due to financial crime risks, according to Yuri Chikhanchin, the director of the Federal Financial Monitoring Service (Rosfinmonitoring).

Source: iStock/mayichao

Speaking at the Federation Council, the upper house of the Federal Assembly of Russia, Chikhanchin stressed that crypto regulation is still taking shape, which must be addressed at the international level, reported Nezavisimaya Gazeta.

The latest announcement comes hand-in-hand with other crypto-related developments by the Russian government.

As reported, Russia’s Ministry of Internal Affairs recently confirmed earlier reports that it is collaborating with the Russian Supreme Court and various other federal institutions to develop draft legislation that would enable the authorities to confiscate cryptocurrency. Under the plan, a proposal is to be submitted by the end of 2021.

The country’s Central Bank also remains wary of cryptocurrencies which they view as a challenge to state power. Last month, the bank told state-run news agency RIA Novosti it would support a national ban on crypto payments because they “carry significant risks, including those in the field of laundering the proceedings of crime and financing terrorist activities.

Meanwhile, the Chinese central bank, the People’s Bank of China (PBoC) is reportedly preparing to test the digital yuan in Suzhou and Shenzhen. The Reserve Bank of India (RBI) is also looking into digital fiat, governor Shaktikanta Das confirmed in December. However, RBI remains absolutely against private digital currency, as this is a function reserved for the sovereign.

Also, one of the central banks of the Eurozone, the Bank of Lithuania, said this week, that single-jurisdictional level initiatives are not capable of meeting a global citizens’ need for a safe, trustworthy, and cost-efficient instrument for cross-border payments.

“Modern-day technology seems to be able to address this need. […] The issue, including the idea of multicurrency Central Bank-issued Digital Currency deserves deep joint analysis,” they stressed.