“cryptocurrencies are opaque in that they are frequently used for illegal operations or criminal nature” says Central Bank of Russia governor Elvira Nabiullina.
Elvira Nabiullina, the governor of the Central Bank of Russia, increased the fear, uncertainty, and doubt (FUD) around the country’s current state of crypto regulation in a Friday press conference. Nabiullina said the following when asked about the rise of digital assets, as reported by local news outlet finmarket.ru:
“You know that our attitude towards cryptocurrencies is of, to put it mildly, skepticism. Related to this are the significant risks for retail investors and the substantial volatility for this type of asset. In addition, cryptocurrencies are opaque in that they are frequently used for illegal operations or criminal nature. Therefore, we cannot welcome investments in them. We seek to prevent the Russian financial infrastructure from using crypto transactions. This is quite doable.”
Nabiullina’s comments came a day after conflicting reports suggested that Russia could impose a blanket ban on cryptocurrency exchanges. Concerns about crypto have even reached the presidential office, according to Cointelegraph, with Vladimir Putin issuing a warning regarding digital assets.
In comparison to their Western counterparts, former Soviet Union countries remain significantly more vulnerable to financial crimes such as money laundering and tax evasion. This is because the disintegration of the USSR resulted in the privatization of state businesses, which concentrated control in the hands of those with enough “money” to buy shares at the time — mafias, gangs, and black-market actors.
Crypto would be a bigger enabler of criminal operations in the region due to its anonymous, borderless, instantaneous, and regulatory-free nature. To address the issue, Russia is promoting the establishment of a regulatory-compliant digital Ruble as a serious competitor to private-sector cryptos.
