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Putin’s internet ombudsman pessimistic about crypto regulation

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Despite Russian officials’ growing interest in cryptocurrencies such as Bitcoin (BTC), the country’s internet ombudsman is certain that local crypto rules will remain mostly prohibitive.

On Wednesday, Dmitry Marinichev, Russia’s ombudsman for the protection of entrepreneurs’ rights under Russian President Vladimir Putin, spoke on a panel at a major local industry event, Blockchain Life 2021, on Russia’s approach to cryptocurrency rules.

Russia will maintain its anti-crypto position because the Russian government does not want Russians to profit from Bitcoin.

“I’m confident that Russian crypto rules will always be prohibitive. Since no one wants to let Russians profit from crypto activities. And no one will ever allow them to make payments in any currency other than ruble”. It’s critical to understand this.”

Marinichev further claimed that Russian crypto legislation, such as the country’s first crypto-focused law, the “On Digital Financial Assets,” or DFAs, had little to do with private investors. And were enacted in response to considerable demand from large business and state-backed firms.

“The DFA law primarily affects large corporations and has no bearing on the sector. The ombudsman said that “it hasn’t hurt ordinary people and enthusiasts in the bitcoin and blockchain business”. He also claimed that the United States had the “cheapest electricity” in the world. Implying that Russia’s energy tariffs are unattractive to bitcoin miners.

Russia’s internet ombudsman

President Putin named Marinichev as Russia’s internet ombudsman in 2014. The person, who appears to be well-versed in the crypto sector, has suggested that inhabitants of Crimea adopt cryptocurrency in 2017. In 2019, he also planned to convert his metal plant, Russian Mining Company, into a crypto mining operation. With the goal of mining 20% of the world’s Bitcoin.

Dmitry Marinichev

Marinichev’s comments on Russian crypto rules come as local governments throughout the country are getting more interested in digital currency. With some ministries offering to generate Bitcoin using related gas. At the same time, when it comes to the interests of its own citizens, the Russian government remains suspicious about Bitcoin. With the Bank of Russia threatening to restrict some crypto exchange transactions.

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