Russian tech and political executives denounce crypto ban proposal

Russia’s caller prohibition connected crypto has drawn disapproval from a fig of large names, including Alexei Navalny’s main of unit Leonid Volkov, and Telegram laminitis Pavel Durov.

On Jan. 20, Russia’s Central Bank published a study proposing a broad ban connected home crypto trading and mining. The study stated that the risks of crypto are “much higher for emerging markets, including Russia.”

However, it appears that this projected prohibition isn’t universally accepted successful the country. A Jan. 22 station by the Telegram founder, Pavel Durov stated that the projected prohibition connected crypto would “destroy a fig of sectors of the high-tech economy.” He added:

“Such a prohibition volition inevitably dilatory down the improvement of blockchain technologies successful general. These technologies amended the ratio and information of galore quality activities, from concern to the arts.”

While Durov conceded that the “desire to modulate the circulation of cryptocurrencies is earthy connected the portion of immoderate fiscal authority,” helium concluded that “such a prohibition is improbable to halt unscrupulous players, but it volition enactment an extremity to ineligible Russian projects successful this area.”

Leonid Volkov: banning crypto is “impossible”

Meanwhile, successful a Telegram post connected Jan 20. Volkov, who is the main of unit for Alexei Navalny, wrote that the prohibition would beryllium similar “calling a spade a spade.”

Navalny is an absorption person successful Russia and laminitis of The Anti-Corruption Foundation (FBK). In August 2020, helium was poisoned with the nervus cause Novichok. After recovering successful Germany, helium returned to Russia successful January 2021 wherever helium was arrested and has remained imprisoned since.

In his announcement, Volkov referenced a Jan. 20 study by Bloomberg. It claimed that Russia's Federal Security Service (FSB) was instrumental successful advancing the prohibition due to the fact that crypto tin beryllium utilized to concern "non-systemic absorption and extremist organizations."

He went connected to adhd that helium was “sure that the Bloomberg version, successful this case, is 100% adjacent to reality, but thing volition happen” due to the fact that Russians are much apt to usage crypto to bargain drugs alternatively than donate it to the Moscow-based non-profit FBK.

“Technically, banning cryptocurrency is the aforesaid arsenic banning person-to-person transfers (i.e. it’s impossible)... Yes, they tin marque it precise hard to deposit funds connected crypto exchanges, which means that intermediary services volition simply look that volition bash this done overseas jurisdictions. Yes, transaction costs volition rise. Well, that's all, I guess.”

Related: Bank of Russia governor: Banning crypto successful Russia is 'quite doable'

Many of Russia’s neighbors person besides taken a hard-line stance connected crypto. On Jan. 19, citizens successful neighboring state Georgia were made to curse an oath to cease mining crypto. The governments of Kosovo and Kazakhstan, have besides precocious been added to the database of countries that person banned crypto mining.

Perhaps 1 objection is Russia’s neighbour Ukraine, which passed a fig of laws to facilitate the country’s adoption of cryptocurrencies successful September 2021.