Russian National Financial Association Calls for Legalization of Crypto Investments

Russia’s major financial industry associations have urged authorities to reconsider their stance against crypto investments in the country’s financial market strategy. The group insists that Russians’ crypto investments should be taken out of a “gray area” rather than banned.

Financial Industry Agencies Urge Government to Regulate Operations of Crypto Assets

Citing the proposal, RIA Novosti and Prime reported that Russia’s National Finance Association (NFA) has issued a call to revise the section of the country’s “Strategy for the Development of Financial Markets in the Russian Federation to 2030” on cryptocurrency investments.This NFA Unites more than 200 entities active in the Russian financial market.

The strategy now states that the Russian government and Russian banks will continue to oppose the use of “currency alternatives,” a term commonly used to describe decentralized digital currencies such as bitcoin. They pose high risks to citizens and can hinder the implementation of macroeconomic policies aimed at creating favorable economic conditions, the document said.

The self-regulatory body of the Russian financial sector noted that despite the importance of Russians’ investment in cryptocurrencies, the operation of crypto assets remains in a “grey area.” Foreign companies and unregistered intermediaries earn revenue from such transactions, the group said.

The NFA believes that offering Russian investors the option of digital financial assets through Russian professional market participants, as well as the possibility of creating an exchange-traded mutual investment fund with cryptocurrencies for accredited investors, requires further study.

The proposal comes after recent reports showed that cryptocurrencies are a popular investment choice for many Russians. According to the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (rasib), at least 17.3 million people in Russia have crypto wallets. In December, Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, announced that Russian citizens have invest 5 trillion rubles of cryptocurrency (over $67 billion).

Russian banks have been strong opponent Legalization of cryptocurrencies in the country and hope strict Make crypto investments by blocking card payments to recipients such as digital asset exchanges.However, it is estimated lead According to the central bank’s own financial stability overview for the second and third quarters of 2021, digital currency transactions by Russian residents are around $5 billion per year.

Do you think Russian authorities will change their stance on cryptocurrency investments? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.