Russia’s leading financial sector association has urged authorities to reconsider their stance against crypto investments in the country’s financial market strategy. The organization insists that crypto investments by Russians should be taken out of the “grey zone” instead of being banned.
Financial Industry Body Urges Government To Regulate Operations With Crypto Assets
The Russian National Financial Association (NFA) has called for changing the country’s strategy for the development of the financial market of the Russian Federation until 2030 in the part concerning investments in cryptocurrencies, RIA Novosti reported. and Prime, citing the proposal. The NFA brings together more than 200 entities active in the Russian financial market.
The strategy now states that the Russian government and the Bank of Russia will continue to oppose the use of “currency surrogates,” a term often used to describe decentralized digital currencies such as bitcoin. They carry high risks for citizens, according to the document, and can hamper the implementation of macroeconomic policies aimed at creating favorable economic conditions.
Operations with crypto assets remain “in the gray zone” despite the fact that Russians’ investments in cryptocurrencies are large, noted the self-regulatory body of the Russian financial sector. Foreign companies and unregistered intermediaries derive revenue from these transactions, the organization noted.
The NFA believes that the option of providing Russian investors with access to digital financial assets through professional Russian market participants, as well as the possibility of creating exchange-traded mutual funds with cryptocurrencies for qualified investors, require additional study.
The proposal comes after recent reports revealed that cryptocurrency is a popular investment choice for many Russians. According to the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), at least 17.3 million people in Russia own crypto wallets. In December, the head of the State Duma’s Financial Markets Committee, Anatoly Aksakov, announced that Russian citizens had invested 5 trillion rubles in crypto (over $67 billion).
The Bank of Russia has been a vocal opponent of the legalization of cryptocurrencies in the country and wants to restrict crypto investments by blocking card payments to recipients such as digital asset exchanges. However, estimates cited in the central bank’s financial stability overview for the second and third quarters of 2021 indicated that the annual volume of digital currency transactions by Russian residents amounts to around $5 billion. .
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