Russia to allow Bitcoin investments but here’s the catch

Namrata Shukla

The cryptocurrency craze took over the world but the Russian Central Bank has maintained its worrisome stance. The deputy chairman noted in the state-owned publication TASS,

“We do not see a place for cryptocurrency in the Russian financial market.”

This comes in after the Bank of Russia governor Elvira Nabiullina made his intention clear to prevent the local financial system from utilizing cryptos. However, another executive at the central bank clarified that crypto investment will remain legal in the country.

While the citizens can indulge in crypto investments like Bitcoin, they will have to do it through foreign companies, added the deputy governor.

Chistyukhin noted,

“Russian citizens and businesses have the right to acquire and hold cryptocurrency, but not through the domestic infrastructure or intermediaries.”

Clearer regulations?

Amid the lack of clarity over the central bank’s approach to crypto, the regulator informed of working on offering a clearer picture in terms of regulations. He also promised that the local authorities will be reviewing legal initiatives regarding the matter.

For the same, the apex bank was preparing an advisory report to address its vision in detail and inform about the role of digital assets in its financial system. Adding to this Chistyukhin stated, “We don’t see a place for cryptocurrency in the Russian financial market.”

This development comes after Anatoly Aksakov chairman of Russian State Duma’s Committee on Financial Markets on Thursday stated that Russia will choose between a blanket crypto ban and legalizing exchanges in 2022. However, a ban would not have come in handy as Russians have invested over $67 billion in cryptos.

This large number was enough to push the authorities to offer regulatory clarity.

With Russian investors allowed to invest in crypto but through foreign exchanges, could push the country behind in terms of growing competition. Nevertheless, prominent exchange giant Binance was seeing second-largest visitors to its website from Russia.