Russian Crypto Leaders Ask Putin for Talks: What’s at Stake?

• The Russian Association of the Crypto Industry and Blockchain (RACIB) and a software developers’ union named Russoft have called on President Vladimir Putin to head a “workshop” to discuss the foundations of crypto regulation in Russia.
• Parties behind the call argue that there is a “serious risk” that the Russian economy will end up “lagging behind” its international counterparts, with both political enemies and friendly countries threatening to surpass Russia in this sector.
• The current policy proposals are not allowing Russian businesses to fully explore the potential of new financial instruments, meaning Moscow could miss out on becoming a global leader in digital payments space.

Call for Talks with Putin

Leaders of Russia’s cryptoasset and blockchain industry say they want to meet President Vladimir Putin for face-to-face talks about crypto regulation. The media outlet RBC reported that the request was made by the Russian Association of the Crypto Industry and Blockchain (RACIB) and a software developers’ union named Russoft. The parties co-authored a letter, which they submitted to Putin’s office and shared online.

What Do They Want?

The parties called on Putin to head a “workshop” that would “agree on the foundations” of policy “in the field of” crypto regulation. The authors asked Putin to “allow representatives” of the “organized” crypto community” to attend the meeting. They argued that there was a “serious risk” that if Moscow fails to introduce “new financial technologies,” then it would potentially lose pace with global digital economic development.

Current Policy Proposals

Russian crypto regulation is stuck in limbo, with Moscow deeply divided over how best to approach this issue. The nation’s finance and commerce ministries favor regulating crypto firms, issuing licenses to domestic exchanges, obliging industrial miners pay tax on their earnings; however Central Bank – headed by key Putin ally Elvira Nabiullina – wants an almost total ban like China has implemented instead and championing their own digital ruble currency instead.

Consequences of Too Much Conservatism

The letter’s authors claimed that current policy proposals would not allow Russian businesses enough freedom or opportunity explore potential new financial instruments without relocating abroad, leading to direct financial losses for Treasury coffers over time as well as missed opportunities at becoming world leaders in digital payments space overall due too much conservatism from officials around this sector currently proposed regulations .

Conclusion

This impasse between different state bodies has led industry groups such as RACIB calling for compromise solutions which could be discussed during face-to-face meetings with President Vladimir Putin himself if he approves such talks taking place soon