Putin’s internet ombudsman pessimistic about crypto regulation

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Russia’s internet ombudsman recently said that regulators were not optimistic about crypto regulation in the country. The public also seems divided on whether or not to support crypto with some supporting it and others outright denouncing any form of cryptocurrency. Future regulatory decisions will be important for bitcoin, but there are still hurdles to overcome before widespread adoption can occur.

The “ethereum” is a cryptocurrency that has been on the rise recently. Vladimir Putin’s internet ombudsman, Dmitry Marinichev, is pessimistic about crypto regulation in Russia.

Putin’s internet ombudsman pessimistic about crypto regulation

 

Despite rising interest in cryptocurrencies such as Bitcoin (BTC) among Russian authorities, Russia’s internet ombudsman expressed confidence that local crypto rules would remain mostly prohibitive.

Dmitry Marinichev, Russia’s ombudsman for the protection of entrepreneurs’ rights under Russian President Vladimir Putin, spoke on Wednesday at a panel at Blockchain Life 2021, a major local industry event, on Russia’s approach to cryptocurrency rules.

Russia will maintain its anti-crypto position because the Russian government does not want Russian citizens to profit from Bitcoin. Marinichev said the following:

“I’m certain that Russian crypto rules will always remain prohibitive since no one wants to let Russians to profit from crypto activities, and no one will ever allow them to make payments in any currency other than ruble.” It’s critical to understand this.”

Marinichev further said that Russian crypto legislation, such as the country’s first crypto-focused law, the “On Digital Financial Assets,” or DFA, had little to do with private investors and were instead enacted in response to considerable demand from large business and state-backed firms.

“The DFA legislation primarily affects large corporations and has little bearing on the sector.” The ombudsman said that “it hasn’t hurt ordinary people and enthusiasts in the bitcoin and blockchain business.” He also said that cryptocurrency miners are not attracted to Russia’s energy tariffs, arguing that the United States offers the “cheapest power” in the world.

President Putin named Marinichev as Russia’s internet ombudsman in 2014. In 2017, the official, who seems to be well-versed in the crypto business, suggested that Crimean locals use cryptocurrency. In 2019, he also planned to convert his metal plant, Russian Mining Company, into a crypto mining operation, with the goal of mining 20% of the world’s Bitcoin.

Russia does “absolutely nothing” to regulate cryptocurrency, according to the chairman of the RACIB.

Marinichev’s comments on Russian crypto rules come as local governments around the country are getting more interested in the digital currency, with some ministries offering to mine Bitcoin with related gas. At the same time, the Russian government is wary of Bitcoin when it comes to protecting the interests of its own citizens, with the Bank of Russia threatening to restrict some crypto exchange transactions.

The “future of cryptocurrency 2021” is a pessimistic forecast for crypto regulation. The internet ombudsman, Pavel Durov, predicts that the government will not be able to regulate crypto in the future.

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Emilia James
By Emilia James

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