While Russia has been discussing several approaches to restricting access for domestic investors, the country's central bank is considering blocking card payments on cryptocurrency platforms.
Andrey Mikhaylishin founder of one project tested in their sandbox said that option would be among those considered by CBR when they come up with new rules around this space soon enough: "They're thinking about everything."
Mikhaylishin learned that the idea had been discussed from a central bank employee and confirmed this information to be true with their own source close Central Bank of Russia (CBR).
The Bank of Russia has recommended that commercial banks deny cards and wallets to entities it lists as suspicious, including crypto exchange services.
However they have not released an advisory report detailing their comprehensive position on cryptocurrencies yet - this should be reviewed by a working group set up at the State Duma which is now considering regulations for digital financial assets outside law "On Digital Financial Assets." The new regulation went into force last year; we're curious what stance Moscow will take towards these virtual currencies?
The group held its first meeting at the lower house of Russia’s parliament on Tuesday. During this discussion, Deputy Governor Olga Skorobogatova made it clear that while they are not drafting a law to ban cryptocurrencies outright- what she did emphasize though was how firm their opposition is against having them circulate within Russian borders (for now).
She added by stressing how prohibited crypto investments were going be for those who invest in them as well; according an employee from CBR's authority and another official present during proceedings.
The Russian government is currently split on how they should regulate cryptocurrencies.
One proposal would allow virtual currencies to circulate while imposing strict controls over financial flows between the crypto space and traditional banking system.
Other participants disagree with this idea stating that it goes against global trends towards openness which could lead them back into restrictions like those seen before 2014 when regulatory measures were introduced after Russia's mass adoption saw an increase in uses involving cryptography products such as Bitcoin.
The country’s finance minister initially suggested limiting purchases only for nonqualified investors- however his view hasn't gained much traction yet.
The Russian government has officially admitted that 10 million citizens are cryptocurrency users.
As per the department's own calculations, this number may be even higher as it does not cover traders who use VPNs to access online markets from outside of Russia and manage their investments more conveniently (with lower taxes).
The fact that Russia is not banning cryptocurrency yet makes it very attractive for locals and international investors. This might lead to an increase in transactions, which would generate more economic activity within the country as well!