Several Russian CEOs have voiced dissatisfaction with the country’s recent decision to prohibit crypto-related transactions and mining.
Russia seemly isn’t pleased with the ban
Telegram’s CEO and co-founder Pavel Durov, as well as Russian opposition leader Alexei Navalny’s right-hand Leonid Volkov, both went to Telegram to oppose the central bank’s plan, which calls for a full ban on cryptocurrency mining and use.
In his piece, Durov stated that the planned prohibition “will eventually halt the growth of blockchain technology as a whole.” He went on to say:
“Such a ban will inevitably slow down the development of blockchain technologies in general. These technologies improve the efficiency and safety of many human activities, from finance to the arts.”
While Durov acknowledged that “any financial authority’s desire to restrict the circulation of cryptocurrencies is legitimate,” he concluded that “such a prohibition is unlikely to halt dishonest players, but it would put an end to lawful Russian ventures in this sector.”
Crypto ban is “impossible” says Leonid Volkov
Meanwhile, Alexei Navalny’s chief of staff, Volkov, remarked on Telegram on January 20 that the ban would be like “calling a spade a spade.”
Navalny is the founder of the Anti-Corruption Foundation and a Russian opposition leader (FBK). He was poisoned with the nerve toxin Novichok in August 2020. He returned to Russia in January 2021 after healing in Germany, when he was arrested and has been held since.
Volkov cited a Bloomberg story from January 20 in his announcement. It stated that Russia’s Federal Security Service (FSB) played a key role in pushing for the ban because cryptocurrency may be used to fund “non-systemic opposition and extremist organizations.”
He went on to say that he was “confident that the Bloomberg version is 100% true to truth in this situation, but nothing will happen” since Russians are more inclined to use cryptocurrency to purchase drugs rather than contribute it to the Moscow-based non-profit FBK.
“Technically, banning cryptocurrency is the same as banning person-to-person transfers (i.e. it’s impossible)… Yes, they can make it very difficult to deposit funds on crypto exchanges, which means that intermediary services will simply appear that will do this through foreign jurisdictions. Yes, transaction costs will rise. Well, that’s all, I guess.”
Many of Russia’s neighbors have taken a harsh position on cryptocurrency as well. Georgian residents were forced to make an oath to stop mining cryptocurrency on Jan. 19. Kosovo and Kazakhstan have lately been added to the list of nations that have outlawed cryptocurrency mining.
One possible exception is Russia’s neighbor Ukraine, which in September 2021 approved a series of regulations facilitating the country’s acceptance of cryptocurrency.
