Is this the end of crypto in Russia? – The FSB has decided

The FSB, i.e. the Federal Security Service of the Russian Federation, which is the successor of the KGB, has agreed with the Central Bank of Russia that cryptocurrencies agents should not, however, be allowed as payment means on Russian territory. Is this the end of the cryptos in the country?

The FSB and the Central Bank of Russia are making a compromise

Before the very news of the consensus reached, the FSB was not entirely sure whether it was possible at all to ban cryptocurrencies such as Bitcoin as a means of payment alone. Both departments had been arguing for a long time about how exactly to regulate digital currencies. While the Bank of Russia was as firm as possible in its belief that everything related to cryptocurrencies should be banned, the FSB was as open to legalisation as possible and wanted to introduce regulations that would favour coin owners.

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According to all the news published on the portal called Baza, both agencies finally reached a mutual compromise. This is to be evidenced by the information contained in a letter from Deputy Prime Minister Dmitry Chernyshenko, who was sent to President Vladimir Putin. Immediately after the meeting, a decision was taken to introduce a total ban on issuing and also using cryptocurrencies as a payment instrument. From now on, in fact, Bitcoin is not completely considered as a means of payment in Russia.

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Chernyshenko said in the same letter that the FSB strongly insisted that some of its proposals directly related to the cryptocurrencies should be included in the draft Russian law on digital financial assets, which will probably pass through parliament this spring.

Some of the FSB’s proposals themselves suggest that the exchange of the crypto-ruble or other fiat currencies should be done only through special intermediaries. In this way the Russians would not be able to buy anything at all with their crypto funds, but exchange them for fiat-rubles.

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Even if a Russian citizen owns a Bitcoin and does not use it in any specific way, he will have to go through the very procedure of detailed identification by specialised operators. The FSB intends to impose administrative responsibility for non-compliance with this law that is being prepared. Interestingly, in some cases we may even have to deal with criminal responsibility.

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While the Bank of Russia and the FSB have reached an agreement on the very way of regulating the cryptocurrencies market, both departments do not want to influence the regulation process itself. So far the central bank has not responded in any way to the proposal that came from the FSB. We will see how it goes in the future. Time will of course verify everything. We have nothing left to do but wait a while.

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