In Brief:
- Telegram CEO criticizes the Bank of Russia’s crypto ban proposal.
- CEO Pavel Durov noted that the ban would drive off IT specialists in the nation to abroad.
- Duriv cautioned that a total ban is unlikely to affect unethical players but will threaten legitimate Russian crypto projects.
Telegram CEO Pavel Durov came forward criticizing the Bank of Russia’s proposal of a ban on crypto-related activities in the nation.
Durov wrote in a Telegram post that a cryptocurrency ban in the nation would chase away IT professionals in the country and will destroy several high-tech sectors.
Durov noted, “The Bank of Russia suggesting a total ban on cryptocurrencies is throwing the baby out with the bath water. None of the developed nations is banning cryptocurrencies.”
The Russian central bank recently published a report proposing a ban on cryptocurrency trading and mining. The bank compared crypto to a Ponzi scheme and said it is a tool used for illicit activities.
A ban of this nature will inevitably slow the development of blockchain technologies in general, Durov added.
He noted that Russia’s neighbors, from Ukraine to Uzbekistan, are following in the footsteps of developed nations and enacting progressive blockchain laws in order to avoid falling behind in technological and economic progress.
Durov accepted the fact that any financial authority would obviously want to regulate cryptocurrency.
However, he cautioned that a total ban, such as that proposed by the Central Bank of Russia, is unlikely to affect unethical players while also threatening legitimate Russian crypto initiatives.
The chief of staff for Russian opposition leader Alexei Navalny, Leonid Volkov, also commented on the proposed ban.
He wrote in a Telegram post that “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.”
Elizaveta Danilova, Russia’s central bank chief, mentioned that Russians with overseas crypto wallets would not be barred from trading crypto and that the new proposal would not apply to overseas virtual assets.
