RBI Deputy Governor: Banning Crypto Is ‘Most Advisable’ for India, Regulation Is ‘Futile’

February 15, 2022 Bitcoin.com

Hungary’s Central Bank Governor Calls for EU-Wide Ban on Cryptocurrency Trading and Mining

February 13, 2022 Bitcoin.com

Russian tech and political executives denounce crypto ban proposal

January 24, 2022 Coin Telegraph

Telegram CEO Pavel Durov wrote that the proposed ban on crypto would “destroy a number of sectors of the high-tech economy” in a recent post on his massaging platform.

Russia’s recent ban on crypto has drawn criticism from a number of big names, including Alexei Navalny’s chief of staff Leonid Volkov, and Telegram founder Pavel Durov.

On Jan. 20, Russia’s Central Bank published a report proposing a blanket ban on domestic crypto trading and mining. The report stated that the risks of crypto are “much higher for emerging markets, including Russia.”

However, it appears that this proposed ban isn’t universally accepted in the former Soviet Union. A Jan. 22 post by the Telegram founder, Pavel Durov stated that the proposed ban on crypto would “destroy a number of sectors of the high-tech economy.” He added:

“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 conceded that the “desire to regulate the circulation of cryptocurrencies is natural on the part of any financial authority,” he concluded that “such a ban is unlikely to stop unscrupulous players, but it will put an end to legal Russian projects in this area.”

Leonid Volkov: banning crypto is “impossible”

Meanwhile, in a Telegram post on Jan 20. Volkov, who is the chief of staff for Alexei Navalny, wrote that the ban would be like “calling a spade a spade.”

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

In his announcement, Volkov referenced a Jan. 20 report by Bloomberg. It claimed that Russia's Federal Security Service (FSB) was instrumental in advancing the ban because crypto can be used to finance "non-systemic opposition and extremist organizations."

He went on to add that he was “sure that the Bloomberg version, in this case, is 100% close to reality, but nothing will happen” because Russians are more likely to use crypto to buy drugs rather than donate 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 also taken a hard-line stance on crypto. On Jan. 19, citizens in neighboring country Georgia were made to swear an oath to cease mining crypto. The governments of Kosovo and Kazakhstan, have also recently been added to the list of countries that have banned crypto mining.

Perhaps one exception is Russia’s neighbor Ukraine, which passed a number of laws to facilitate the country’s adoption of cryptocurrencies in September 2021.

Bank of Russia governor: Banning crypto in Russia is ‘quite doable’

December 17, 2021 Coin Telegraph

Ban

"We cannot welcome investments into cryptocurrencies," says Central Bank of Russia governor Elvira Nabiullina.

In a Friday press conference, Central Bank of Russia governor Elvira Nabiullina further escalated the fear, uncertainty and doubt (FUD) surrounding the state of crypto regulation in the country. When asked about the rise of digital assets, Nabiullina gave the following remarks, as reported by local news outlet finmarket.ru and translated by Cointelegraph:

"You know that our attitude towards cryptocurrencies is of, to put it mildly, skepticism. Related to this are the significant risks for retail investors and the substantial volatility for this type of asset. In addition, cryptocurrencies are opaque in that they are frequently used for illegal operations or criminal nature. Therefore, we cannot welcome investments in them. We seek to prevent the Russian financial infrastructure from using crypto transactions. This is quite doable."

Nabiullina's remarks came one day after conflicting reports pointed to the possibility of a blanket ban on cryptocurrency exchanges in Russia. As Cointelegraph recently reported, concerns about crypto have even made their way to the presidential office, with Vladimir Putin issuing a warning about digital assets.

In context, countries of the former Soviet Union remain far more susceptible to financial crimes, such as money laundering or tax evasion, than their Western counterparts. This is because the privatization of state enterprises from the breakup of the USSR concentrated power in the hands of individuals who possessed enough "capital" to purchase shares at that time — mafias, gangs and black-market participants.

Relatively speaking, the anonymous, borderless, instantaneous and regulatory-lacking nature of crypto would therefore be a greater enabler of criminal activities in the region. Partly to combat the problem, Russia is prioritizing the development of a regulatory-compliant digital Ruble as a sizable competitor to cryptos developed in the private sector.

Russia to decide between blanket crypto ban and legalizing exchanges in 2022

December 16, 2021 Coin Telegraph

CBDC Ruble

The world's biggest country will reach a crossroads on crypto regulation as it enters 2022.

On Thursday, conflicting reports emerged in Russia on the state of crypto regulatory affairs. First, a report by Reuters indicated that the Central Bank of Russia is seeking a ban on cryptocurrencies, citing risks to financial stability and the exploding volume of transactions. If enacted, the move would align with remarks made by Russian President Vladimir Putin last month, who stated that cryptocurrencies "bear high risks" at an investment forum in Moscow. The nation's central bank is currently preparing an advisory report on the issue.

However, Anatoly Aksakov, chairman of the Duma [Russian Parliament] Committee on Financial Markets, gave the following statement in a press conference the same day, as reported by local news outlet interfax.ru and translated by Cointelegraph:

There exists a very tough approach about the complete prohibition of cryptocurrencies, such as acquisition or ownership. There [also] exists an approach where there must be appropriate crypto exchanges, where everything is legalized, transparent, and understandable to regulatory bodies. It would be easier for the Federal Tax Service of Russia to tax such [exchange] transactions.

Chairman Aksakov also voiced his support cryptocurrency mining regulation in the country, citing factors such as mining taxation and business electricity consumption. Authorities in the country prioritize launching a CBDC ruble and have enacted tough crackdowns on the private crypto sector, including banning mutual funds from investing in Bitcoin (BTC). Most recent figures suggest that Russians transact about $5 billion each year in cryptocurrencies.

India to set maximum penalty for violating crypto norms at fine of $2.7 million or 1.5 years in jail

December 7, 2021 Coin Telegraph

India to set maximum penalty for violating crypto norms at fine of .7 million or 1.5 years in jail

Coin Telegraph

The country wishes to see all crypto activities take place on platforms regulated by SEBI.

On Tuesday, BloombergQuint (Bloomberg India) reported that the penalty for non-compliance with the Indian government's crypto policies could range from a maximum fine of 20 crore rupees ($2.7 million dollars) or 1.5 years in jail. Prime Minister Narendra Modi will likely give cryptocurrency investors a deadline to comply with new rules and declare their assets. While the regulatory environment in the country holds a high degree of uncertainty, reports have indicated that investors' crypto must soon be held in exchanges operating under the oversight of the Securities and Exchange Board of India, or SEBI.

This would mean that private wallets would not be legal under the proposed legislation, and investors who use them could be subjected to the aforementioned judicial penalties. In addition, Modi's government plans to institute a minimum capital threshold for investing in cryptocurrencies.

India is taking a hard-line stance against crypto due, in part, to the perceived rise in fraud, money laundering and terrorist financing in recent years. Another element, however, is that the competition from privately-owned or privately-issued cryptocurrencies would, in theory, threaten the Reserve Bank of India's plans to launch a digital rupee. The official text from an ongoing controversial crypto bill in the country is as follows:

"To create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses."

crypto ban