Russia’s National Finance Association Calls for Legalization of Crypto Investments – Finance Bitcoin News

The main finance industry association of Russia has urged authorities to reconsider a position against crypto investments in the nation’s financial market strategy. The organization insists that the crypto investments of Russians should be brought out of the “gray zone” instead of being banned.

Finance Industry Body Calls for Government Regulation of Crypto Assets Operations

The Russian National Financial Association (NFA) has issued a call to amend the country’s Strategy for Development of the Financial Market of the Russian Federation Until 2030 in the part concerning investments in cryptocurrencies, RIA Novosti and Prime reported, quoting the proposal. The NFA unites over 200 entities active in Russia’s financial market.

The strategy now states that the Russian government and Bank of Russia will continue to oppose the use of “monetary surrogates,” a term often employed to describe decentralized digital currencies such as bitcoin. According to the document they pose a high risk for citizens and could hinder macroeconomic policies that aim at creating positive economic conditions.

Operations with crypto assets remain “in the gray zone” despite the fact that investments of Russians in cryptocurrencies are significant, the self-regulatory body of the Russian finance sector noted. These transactions can generate revenue for both foreign businesses and non-registered intermediaries, according to the organization.

NFA thinks that additional research is required to determine if Russian investors have access to digital assets via Russian market participants.

Recent reports have shown that cryptocurrency has become a very popular option for Russians to invest in. The Russian Association of Cryptoeconomics Artificial Intelligence and Blockchain reports that at least 17.3 millions Russians have cryptocurrency wallets. Anatoly Aksakov (head of the Financial Market Committee in the State Duma) announced that Russian citizens had invested over $67 billion into crypto, a total of 5 trillion rubles.

Bank of Russia, a firm opponent of the legalization of cryptocurrencies in Russia, wants to limit cryptocurrency investments by blocking payments from card recipients to digital asset exchanges. However, estimates quoted in the central bank’s own Financial Stability Overview for Q2 and Q3 of 2021 have indicated that the annual volume of digital currency transactions made by Russian residents amounts to around $5 billion.

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Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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