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Proposed crypto prohibition is slammed by Russia tech and political leaders

A number of prominent figures, including Alexei Navalny’s chief of staff Leonid Volkov and Telegram founder Pavel Durov, have criticized Russia’s recent crypto prohibition.

On January 20, Russia’s Central Bank released a report advocating a blanket ban on cryptocurrency trading and mining within the country. The risks of cryptocurrency are “far higher for emerging markets, particularly Russia,” according to the research.

However, it appears that throughout the former Soviet Union, this prohibition is not unanimously in acceptance. According to a Jan. 22 article by Pavel Durov, the founder of Telegram, the proposed crypto prohibition would “destroy a number of sectors of the high-tech industry.” He continued, “

“Such a 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 the arts.”

While Durov acknowledged that

“any financial authority’s desire to restrict the circulation of cryptocurrencies is natural,”

Hen, he concluded that

“such a prohibition is unlikely to halt dishonest players, but”

” it will put an end to legal Russian ventures in this sector.”

Meanwhile, Alexei Navalny’s chief of staff, Volkov, remarked on Telegram on January 20 that the ban would be like “calling a spade a spade.”

Navalny is the founder of the Anti-Corruption Foundation and a Russian opposition leader (FBK). He was poisoned with the nerve toxin Novichok in August 2020.

Then, He returned to Russia in January 2021 after healing in Germany, where he was arrested and has been held since.

Volkov cited a Bloomberg report from January 20 in his announcement. It states Russia’s Federal Security Service (FSB) plays a key role in pushing for the ban because cryptocurrency can be to fund

“non-systemic opposition and extremist organizations.”

So, He goes on to say that he’s

“confident that the Bloomberg version is 100 percent close to reality in this situation, but nothing will happen”

since Russians are more inclined to use cryptocurrency to buy drugs rather than contribute it to the Moscow-based non-profit FBK.

“Technically, banning cryptocurrency is the same as banning person-to-person transfers (i.e. it’s impossible)…”
“Yes, they can make it very difficult to deposit funds on crypto exchanges,”
” which means that intermediary services will simply appear that will do this through foreign jurisdictions.”
” Yes, transaction costs will rise. Well, that’s all, I guess.” Many of Russia’s neighbors have taken a hard line on cryptocurrency as well. Georgian residents are to make an oath to stop mining cryptocurrency on Jan. 19. Kosovo and Kazakhstan have lately been added to the list of countries that have outlawed cryptocurrency mining.

One possible exception is Russia’s neighbor Ukraine, which in September 2021 passed a number of regulations facilitating the country’s acceptance of cryptocurrency.
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