• Russian authorities have appealed to President Vladimir Putin to stimulate regulatory efforts.
  • The appeal sprouts from fear of the country lagging behind other nations due to its conservative approaches to financial technologies.
  • The development comes a year after Russian authorities clashed on crypto regulation plans.

After a high institutional clash on plans for cryptocurrency regulation a while ago, Russian crypto authorities have appealed to President Vladimir Putin to stimulate regulatory efforts. The request sprouts from fears that the Russian Federation could lag behind other countries if it keeps operating on a rather conservative approach toward financial technologies.

Russia eyes to be a global leader in digital payments

The Russian Crypto Industry Association, comprising the Russian Association of Cryptoeconomics, Artificial Intelligence, and Blockchain (Racib), has appealed for President Putin's involvement in crypto.

In the open letter to the head of state, the association wants the high office to help structure the country's regulatory framework for crypto and related technologies.

The letter calls for Putin's attention to the government's demeanor towards the digital asset regulation process, citing:

Serious risks of the economy lagging behind in the introduction of new financial technologies."

According to the association, the current state policy bars Russian businesses from leveraging the potential of new financial infrastructure. This compels them to shift to other jurisdictions, which results in direct financial losses for Russia's treasury. A paragraph in the organization's address to the president reads:

[This] extremely conservative and prohibitive approach may cause Russia to lose pace in the development of the digital economy…."

The excerpt hints at Russia's intention to become a global leader in digital payments and accounting systems.

Racib also used the address to remind the head of state about his 2019 meeting with the country's IT associations to discuss new legislation. From the letter, despite Putin's promise of experimental legal regimes for fintechs, they have never been implemented. Moreover, the proposed changes to the country's digital financial assets laws make digital technology implementation harder.

Notably, the letter was co-authored by Russoft, a non-profit partnership of software developers. On their part, Russoft asked the high office to call a meeting specifically for the issues mentioned and involve crypto stakeholders.

They also proposed a working group to design a pilot project introducing digital financial technologies. This would include cross-border payments to serve Russia amid the war-provoked sanctions.

Russia doubling down on crypto

Russia has been doubling down on its crypto adoption efforts, bolstered by the recent launching of an investment fund for financing cryptocurrency mining projects. This move signified the industry's victory over regulatory hurdles and hostile stances from key arms of government.

Russian business news source Kommersant recently revealed that investors with at least 300,000 rubles (approximately $4,000) could participate in the scheme. The 300K rubles is the capital needed to buy the requisite hardware and pay for energy and operating expenses, among other related costs.

Russia’s paradigm shift

These developments come a year after Russian authorities clashed when the finance ministry submitted legislative proposals conflicting with the central bank's demand for a blanket ban. The Bank of Russia suggested a total ban on cryptocurrency trading and mining because digital currencies threaten financial stability.

The finance ministry disagreed with the proposal, provoking President Putin to call on authorities to find a consensus. 

Notwithstanding, Russia currently offers favorable conditions for its mining operations courtesy of good climate and affordable energy sources. As Western sanctions continue to impact regular industries, digital assets are presented as the best alternative for Russia as far as economic resources are concerned.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP