In a press conference on Friday, the governor of the Russian central bank, Elvira Nabiullina, further escalated the fear, uncertainty and doubt (FUD) about the state of crypto regulation in the country. When asked about the rise of digital assets, Nabiullina made the following remarks, the local news agency reported: finmarket.ru and translated by Cointelegraph:
They know that our stance on cryptocurrencies is skeptical to say the least. Associated with this are the considerable risks for private investors and the considerable volatility of this type of investment. In addition, cryptocurrencies are intransparent in that they are often used for illegal operations or criminal purposes. Hence, we cannot welcome investment in them. We are trying to prevent Russian financial infrastructure from using crypto transactions. That is quite feasible.
Nabiullina’s remarks came a day after conflicting reports on the Possibility of a general ban on cryptocurrency exchanges in Russia. As Cointelegraph recently reported, concerns about crypto have even made their way into the presidency Vladimir Putin warns of digital assets.
In this context, countries of the former Soviet Union remain far more susceptible to financial crimes such as money laundering or tax evasion than their western counterparts. This is because the privatization of state-owned companies after the collapse of the USSR concentrated power in the hands of individuals who at the time had enough “capital” to buy stocks – mafias, gangs, and black market participants.
In relative terms, the anonymous, limitless, instant, and regulatory nature of crypto would therefore make criminal activity more likely in the region. Also to combat the problem, Russia is prioritizing the development of a lawful one digital ruble as a sizable competitor to cryptos developed in the private sector.