Russian Businesses Urge Government to Approve Only Domestic Cryptocurrencies

One of Russia’s leading public associations of entrepreneurs has sent a proposal to their government asking them to approve only domestic cryptocurrencies in their upcoming cryptocurrency legislation.

Also read: Putin Orders the Issue of Russia’s National Cryptocurrency – the Cryptoruble

Proposal to Government

The Association of Entrepreneurs for the Development of Business Patriotism (Avanti) sent a proposal to the Federation Council and the State Duma on Monday to legislatively permit only the circulation of domestic cryptocurrencies in Russia, RIA Novosti reported.

Avanti is one of Russia’s leading public associations for entrepreneurs and businessmen. Supported by members of the Russian parliament, the association works with entrepreneurs, officials and regions to promote the idea of business patriotism.

In its letters, the association wrote:

We propose to prohibit the issuing and circulation of foreign cryptocurrencies in the territory of the Russian Federation, to concentrate on the development of domestic virtual currencies.

Association Sees Substantial Risks

The association outlined many risks it associates with cryptocurrencies. “The issuance and circulation of foreign cryptocurrencies in the territory of the Russian Federation can lead to irreversible negative consequences both in the field of economic development of our state and its political stability,” the letter read.

The head of the association, Rahman Yansukov, then pointed out in the letter that foreign cryptocurrencies can “stimulate the development of not only the shadow economy but are capable of generating new forms of ‘universal evil’, such as terrorism, human trafficking, and drug trafficking.” Furthermore, he noted that they “bear significant risks for the state and for every citizen,” which he said includes the “lack of control over the issuance” of money, “unpredictability,” “insufficient security of operations, anonymity,” and “decentralization.”

Moreover, he claimed that “it is also important to note that the main users of cryptocurrency are people who want to conduct financial transactions anonymously,” RIA Novosti detailed, and quoted him saying “it can be assumed that these transactions or the funds involved in them are in most cases illegal.”

Avanti’s letters suggested that “the activities of any kind of prohibited organizations can be financed by foreign cryptocurrencies,” the publication described. In addition, the letter read:

Bribes to unscrupulous officials or compensation to saboteurs cannot be tracked and warned, since both subjects of the transaction, like the currency itself, will be anonymous.

State Duma’s Comment

Following the news of the association’s proposal, also on Monday, RIA Novosti obtained a response from Sergey Zhigarev, the Chairman of the State Duma Committee on Economic Policy, Industry, Innovative Development, and Entrepreneurship.

While emphasizing the importance of supporting the business community, he told the publication:

I’m not sure that it is technically possible to separate the sale of cryptocurrencies, for example, by Russian companies … from foreign cryptocurrencies, so regarding the ban – this is a technically impossible thing, in my opinion.

Last week, Russia’s president Vladimir Putin said that cryptocurrencies will be regulated in Russia. The central bank and the finance ministry are now working together to draft a basic regulatory framework for them. The draft bill is expected to be introduced by the end of this year. Meanwhile, Russia is also working on its national cryptocurrency, the cryptoruble.

What do you think of the association’s proposal? Let us know in the comments section below.

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