Russian tech executives and politicians condemn proposed crypto ban

The recent cryptocurrency ban in Russia has drawn criticism from various personalities, like Alexei Navalny’s chief of staff Leonid Volkov and Telegram founder Pavel Durov.

January 20th The Central Bank of Russia released a report proposing a blanket ban on cryptocurrency trading and mining in the country. The report noted that cryptocurrency risks are “much higher for emerging markets, including Russia.”

However, it appears that this proposed ban is not widely accepted in the country. A Jan. 22 post by Telegram founder Pavel Durov said the proposed cryptocurrency ban would “destroy a number of sectors of the high-tech economy.”. And he added:

“This ban will inevitably slow down the development of blockchain technologies in general. These technologies improve the efficiency and safety of many human activities, from finance to art.”

Russian tech executives and politicians condemn proposed crypto ban
Russian tech executives and politicians condemn proposed crypto ban

Although Durov admitted that the “desire to regulate the circulation of cryptocurrencies is natural on the part of any financial authority”, concluded that “such a ban is unlikely to stop unscrupulous actors, but it will nullify legal Russian projects in this area”.

Leonid Volkov: Cryptocurrency ban is ‘impossible’

Meanwhile, in a Telegram post on Jan. 20, Volkov, Alexei Navalny’s chief of staff, wrote that the ban was like “calling a spade a spade”..

Navalny is the leader of the opposition in Russia and founder of the Anti-Corruption Foundation (FBK). In August 2020, he was poisoned with the nerve agent Novichok. After my recovery in Germany In January 2021 he returned to Russia, where he was arrested and has been imprisoned ever since.

In his announcement, Volkov referenced a Jan. 20 report by Bloomberg. He said so Russia’s Federal Security Service (FSB) was instrumental in enforcing the ban, as cryptocurrencies can be used to fund “non-systemic opposition and extremist organizations.”.

He added that he’s “sure the Bloomberg version is 100% realistic in this case, but nothing’s going to happen” because Russians are more likely to use cryptocurrencies to buy drugs than donate them to the Moscow-based non-profit organization FBK.

“Technically, banning cryptocurrencies is the same as banning person-to-person wire transfers (i.e. impossible)… Yes, they can make it very difficult to deposit funds on cryptocurrency exchanges, which means intermediary services will simply appear to be doing so through foreign jurisdictions.” to do. Yes, transaction costs will increase. Well, that’s it, I think.â????

Many of Russia’s neighbors have also taken a tough stance on cryptocurrencies.. On January 19, citizens of neighboring Georgia had to swear that they would stop mining cryptocurrencies. The governments of Kosovo and Kazakhstan were also recently added to the list of countries that have banned cryptocurrency mining.

Could be An exception is Russia’s neighbor Ukraine, which passed a series of laws in September 2021 to facilitate the adoption of cryptocurrencies in the country.

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