Russia Considers that by Design Cryptocurrencies cannot be Regulated

April 20, 2019 Off Maheen Hernandez By Maheen Hernandez

Andrew Yang, Democratic Presidential Candidate, stated on Twitter:  “New Policy #22 – Digital Asset/Cryptocurrency Regulation. Investment in cryptocurrencies and digital assets has far outpaced our regulatory frameworks. Investors need to know what their treatment will be in order to innovate in the U.S properly.”

Yang stated that cryptocurrencies have now grown representing a lot of value and economic activity.  He further added that there is no regulatory uniformity in the cryptocurrency space, which in turn have led to a need for patchwork to gain regulatory clarity concerning different states — thereby making it difficult for the US market to compete with other markets like in China and Europe.

When commenting about Fang one of the Twitter users stated that Fang is one user who is in touch with technology, crypto, and the blockchain.  The Twitter user further added the government does not have any further idea of what to do with the digital asset.

In India, the RBI has excluded cryptocurrency from the regulatory Sandbox.  The RBI, which functions as the Central Bank of India stated that blockchain and smart contracts are welcomed, but cryptocurrency and related services might not be accepted for the testing process.  The RBI has issued “An indicative negative list” consisting of products, services, and technology “which might not be accepted for testing.”  This list included the cryptocurrency.

Russia, on the other hand, has recently stated that they do not have a clue as to how they are to regulate the cryptocurrency.  They have proposed a ‘digital assets’ law which focuses on legalizing ICOs in Russia, and they are expected to be reviewing the law in May. However, the lawmakers have now realized that it is not useful to regulate Bitcoin. They consider that by design cryptocurrencies cannot be regulated.

Moiseev stated, “To be honest, I thought anonymity and cryptocurrencies were a thing of the past.” He further added that he attended two roundtables at Gaidar forum where he heard others saying that secret platforms do exist and that they can provide with complete anonymity.

In the latest version of the law, the definitions of cryptocurrency, mining, and tokens are removed.  Instead, they are all being referred to under the general definition of digital assets.  The current law though drafted with good intentions is under a lot of criticism.

Yuriy Pripachkin stated that the proposed law would only increase government pressure, ultimately pushing startups to move on to friendly jurisdictions like in Malta or Switzerland.