This article is from 1prime.ru and the original article can he read here
MOSCOW, April 6 – PRIME. The use of cryptocurrencies to circumvent sanctions, especially in terms of payments for large amounts, is impossible, according to the response of the First Deputy Chairman of the Bank of Russia Ksenia Yudaeva to the proposals of the State Duma deputy from United Russia Anton Gorelkin.
The Central Bank urged not to invest in cryptocurrencies
“We believe it is practically impossible to use cryptocurrencies to circumvent sanctions, especially in terms of payments for large amounts,” according to a document available to RIA Novosti.
The Central Bank explained that in the current geopolitical environment, it is necessary to note the increase in the regulatory risks of cryptocurrencies. Thus, foreign regulators, which have not yet banned the use of cryptocurrencies for payments, require more and more transparency in cryptocurrency trading from crypto exchanges and financial intermediaries, including in the field of compliance with customer identification procedures.
“Regulators in the US, EU, UK, Japan, Singapore have begun to implement measures to prevent the circumvention of sanctions using cryptocurrencies. In this regard, crypto exchanges are introducing certain restrictive measures against Russian crypto investors, up to blocking access to funds,” the response specifies parliamentarian regulator.
According to the Bank of Russia, it is also necessary to take into account the fact that cryptocurrencies serve much fewer payments than traditional payment systems, so large payments can be detected and blocked by foreign regulators.
The regulator also pointed out that, according to the law on digital financial assets and digital currency, cryptocurrencies cannot be used between Russian counterparties as a consideration for goods, work and services, and the Central Bank considers it “inappropriate” to change this provision.
The Bank of Russia gave such an answer to one of the points of the package of proposals for regulating the cryptocurrency market in the Russian Federation, compiled by Gorelkin following the results of the March round table, of which he was the moderator, at the site of the United Russia party. In particular, the participants of the round table proposed to allow settlements in digital currency by Russian commercial legal entities and individual entrepreneurs among themselves and in cooperation with foreign counterparties.
As stated in the answer to the deputy, the Bank of Russia does not support the admission of private digital currencies to the financial market of the Russian Federation and their use as a means of payment, since this can lead to “the formation of a number of significant risks for the welfare of citizens, the stability of the financial system and the economic security of the country.”
The Central Bank opened a public discussion on the regulation of the crypto market in Russia – in January, the regulator published a report in which it proposed to legally ban the circulation and mining of cryptocurrencies in the country, while not completely limiting their ownership.
Then the Ministry of Finance opposed this approach and proposed to legalize the market. In early February, the Cabinet of Ministers approved the relevant concept and instructed to develop a bill. Then, on February 18, the ministry submitted to the government a bill on the regulation of cryptocurrencies, which, in particular, proposes to maintain the ban on their use as a means of payment in Russia, introduce the identification and online testing of investors in such assets, and consolidate the definition of digital mining.
At the same time, the Central Bank did not give in and prepared its own package of bills, in which it again called for a ban on the issuance and circulation of cryptocurrency in the country.