Uncertainty of Crypto Regulation – Russia Stumbles

One of the fascinating results of the clash between traditional political institutions and the crypto space is how it can reveal an apparent lack of consistency in power systems that would otherwise look monolithic. Digital assets on a parallel dimension to the policy. Where there is neither consensus nor clear rules, this, in turn, leads to an astonishing variety of voices and opinions in the absence of a politically coordinated course. Last week, the debate over a rare, lively policy in Russia began following an attempt by its central bank; Promote a tough position cryptocurrency. Such disagreements between public agencies on substantive issues are not rare.

Following a proposal by the Central Bank for a total ban, it became clear that the Ministry of Finance works on its crypto-regulatory framework; Whose principles are fundamentally different from the prohibitive aspirations of the Central Bank Russia. Overall, the Ministry proposes using traditional banking system rails to facilitate crypto payments and the introduction of reliable mechanisms for the classification of qualified and unqualified investors and financial supervision. Even the former president, Dmitry Medvedev, made comments supporting the regulation; Instead of a complete ban on cryptocurrency transactions. It seems that the battle over how to deal with the power of the digital asset space is going on in the halls of the Russian government, and its result is someone guessing.

Crypto Regulation and Countries

Tested for the first time last year with the inclusion of a problematic digital assets broker in the infrastructure bill; The tactic of secretly attaching crypto-hostile provisions to giant mandatory taxes could be a new tool for choosing crypto opponents. After studying the recently introduced U.S. Competition Law, Crypto-defenders found a clause that allowed the Treasury Department to bypass “special measures” for certain financial transactions; Including those performed using cryptocurrency. Such measures may include establishing supervision; and explicit prohibitions on offering certain services and products to financial institutions.

The moral position of the U.S. Securities and Exchange Commission against stock trading funds, which offer a direct impact on cryptocurrencies, is well known. Consequently, denying this last week at an ETF elsewhere is not a shock to those who follow this space. There is also no extended review period for another BTC-related product, the ARK 21Shares Bitcoin ETF. The preferred strategy of the regulator is to reverse such deadlines as the existing rules allow.

Some analysts see the executive branch as a broader cryptocurrency strategy than a single agency policy. The SEC’s position on the Bitcoin ETF is in line with rumors of a future Biden administration executive order; Which considers cryptocurrencies a threat to national security.