• Tue. May 30th, 2023

Russia’s Internet Ombudsman Not Optimistic about Crypto Regulation

Oct 27, 2021

Although Russian officials are showing a greater interest in digital currencies like Bitcoin, the country’s internet ombudsman is pessimistic. So far, he is confident that Russia’s local regulations for crypto will be quite prohibitive for the most part. We’re talking about Dmitry Marinichev, who is serving as the country’s ombudsman to protect entrepreneurs’ rights under the current government.

On Wednesday, a prominent crypto event, called Blockchain Life, was held, and Dmitri was part of the discussion panel. There, he talked about Russia’s strategy towards crypto regulations. In his opinion, Putin’s government will consistently maintain a prohibitive attitude towards cryptocurrency. That’s because he thinks the government doesn’t want locals making money through decentralized currency.

In case you’re wondering, Russia has taken a hard stance towards cryptocurrency, just like China. It could be a way for the authoritarian regime to reinstate their power. After all, the proliferation of decentralized currency would make it difficult for the government to monitor citizens. To avoid the issues to keeping track of transactions, the countries respective governments have banned cryptocurrencies entirely.

In a statement, he explained how he’s certain that the country’s crypto policies will remain restrictive. It’s because the Putin government wants to ensure that transactions aren’t made with any other currency except for ruble.

He went on to argue about the country’s crypto laws, especially their first ever crypto-based regulation on digital financial assets. Apparently, it has little to do with individual traders. Rather, they were put in place because state-supported businesses and big companies demanded it. He said that the new DFA law doesn’t relate to the industry. Rather, it primarily targets major companies. Consequently, it hasn’t had an impact on crypto enthusiasts and blockchain fans.

The ombudsman added that the country’s energy prices don’t appeal to crypto miners. That’s because in their opinion, the US has the cheapest power in the world. President Putin appointed Dmitri Marinichev as the country’s internet ombudsman 7 years ago.

Based on his activities, he has had deep involvement with the cryptocurrency industry. He even suggested that citizens of Crimea are using crypto. He also had plans to completely modify his private metal factory, called the Russian Mining Company, for crypto purposes. In 2019, he intended to make it a crypto mining plant. He was overly ambitious and aimed to mine about 20 percent of the Bitcoin in the world.

His comments on the country’s crypto regulations come after local governments gaining interest in cryptocurrency. Meanwhile, some ministries are suggesting that they mine Bitcoin using associated gas. However, it doesn’t change the fact that Putin’s government is skeptical of Bitcoin in terms of their residents’ interests. That’s why the Bank of Russia is trying to block transactions towards crypto exchanges.

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