Russian Crypto Industry Association Urges President Putin to Improve Regulations
The Russian Association of Crypto Industry and Blockchain (RACIB), which represents the country’s blockchain and crypto sector, has requested President Vladimir Putin's involvement in advancing regulatory efforts in the field of digital financial technologies.
The association fears that the conservative approach towards cryptocurrency in Russia could lead to the country lagging behind other nations in this emerging sector.
In an open letter addressed to the President on March 6, the RACIB criticized Russia's slow adoption of crypto laws, even though the country implemented the first crypto law, "On Digital Financial Assets," in 2021. According to the association, the regulatory hostility has been forcing Russian companies to move to other jurisdictions, resulting in financial losses for the country.
The RACIB has further expressed concerns about the proposed amendments to the crypto law, introduced by lawmakers in November 2022, which suggest launching a "national cryptocurrency exchange."
The association believes that some of these amendments would complicate the implementation of digital financial technologies in Russia as they introduce criminal sanctions for local blockchain developers. The RACIB fears that these amendments could increase pressure on the local crypto community by Russian enforcement authorities.
The RACIB's executive director, Alexander Brazhnikov, that "It will not be easy for companies in the digital asset industry to prove that they are doing everything within the framework of the Russian legislation." A working group has been requested for introducing digital financial technology to Russian customers, including cross-border payments.
The non-profit partnership of software developers, Russoft, co-authored the letter and has also asked President Putin to hold a meeting with the crypto space's participation to address these matters. The letter urges the President to be more proactive when it comes to crypto regulations to take advantage of the potential of new financial instruments.
CBW - External Analyst