The Governor of the Central Bank of Russia has suggested banning Crypto Assets from participating in domestic Settlement and strengthening penalties.

CoinVoice has recently learned that, according to Cryptonews, Elvira Nabiullina, the head of the Central Bank of Russia, emphasized on April 3 during a speech at the State Duma the need to limit the use of Crypto Assets in the domestic economy and advocated for stricter penalties for violations of the ban. Nabiullina is an important ally of Russian President Putin and currently oversees the Central Bank of Russia’s sovereign digital currency (digital ruble) project. She pointed out that although the Central Bank supports exploring the cross-border applications of encryption assets within a specific “regulatory sandbox” framework, it firmly opposes their infiltration into the national currency system and Settlement activities.

Since 2020, Russia has banned payments in crypto assets, but law enforcement is currently relatively lenient, and there is a lack of a clear legal framework for related transactions. Nabiullina called for increased legal responsibilities for payment activities using crypto assets within Russia, stating: “Our position has not changed. We cannot allow crypto assets to penetrate domestic currency circulation and domestic settlement. We suggest seeking investment opportunities in crypto assets while increasing responsibilities for using crypto assets in domestic settlements.” Nabiullina also supports allowing “high net worth qualified investors” to invest in crypto assets within a “sandbox” and suggested discussing the expansion of certain derivative investment permissions to ordinary qualified investors. She emphasized that retail investors should be protected from the risks posed by the highly volatile crypto market.

In addition, after Nabiullina’s speech, Anatoly Aksakov, chairman of the State Duma’s Financial Markets Committee, pointed out that there are still differences in Moscow regarding the regulation of Crypto Assets. There is a clear division of opinion within the Duma on Crypto regulation, with some members supporting restrictions while others show strong interest. [Original link]