Russia decides on an authoritarian law on cryptocurrencies: digital coins are prohibited as a means of payment, and are permitted as investments in a strictly controlled framework. While the central bank warns of the criminal use of cryptocurrencies, ex-chess world champion Garri Kasparow extols it as a technology through which citizens can regain some control. Bitcoiners in Russia can breathe a sigh of relief. Contrary to what was suggested in the past, owning and trading cryptocurrencies will not become illegal. But the law is still far from being satisfactory. The Duma has now accepted an amended legislative proposal for handling cryptocurrencies after the second reading. The law is therefore considered to be as good as passed. The law sees cryptocurrencies as a type of property that is legal to own. That could be understood as legalization.
Central bank is hostile to cryptocurrencies
The strong role of the central bank in particular could have unpleasant consequences in the future. Sergei Schwezow, deputy governor of the central bank, explains in a live video on Youtube about the law that the central bank does not recommend cryptocurrencies as an investment: “The Bank of Russia as a regulator remains in the position that cryptocurrencies are not an investment. They are more like a pyramid game or a roulette game and should not be part of the financial market. Neither the government nor financial middlemen should encourage citizens to buy cryptocurrencies. ”