Cryptocurrency laws in Russia could marginalize Bitcoin trading

With cryptocurrency laws in Russia taking an ambiguous form, experts believe that it could severely sideline Bitcoin, Ethereum, or other leading altcoins trading on local regulated cryptocurrency exchanges.

Comprehensively classified under three categories, namely virtual assets, technical tokens, and digital finance assets, it seems that the recently laid-out cryptocurrency laws in Russia leave more questions unanswered than answered. Although it may appear that legalizing cryptocurrencies would take the anti-United States government a step closer to finding a feasible alternative to the US dollar, it has so far, failed to take a firm legal stance on cryptocurrencies so far.

Cryptocurrency laws in Russia leave more questions than answers

Daria Nosova, head of Fintech O2 Consulting, told local news outlet Tass that it is impossible to guess Russia’s cryptocurrency stance until the full text of the amended bill is published. Given the ambiguity, the Tass report claims that the bill will, in fact, demotivate market participants from in Bitcoin or Ethereum trading as that will be considered operating outside the law.

An anonymous and exasperated crypto trader told that the political tug of war is making things quite unbearable for those closely involved in the space. It is time politicians take a firm stand and put equivocation to rest, he remarked.

Meanwhile, an unnamed executive working at an investment firm Finam stated that the new ruling will probably not criminalize Bitcoin trading but will leave the traders to negotiate the market at their own risk, thereby causing many to give up trading in fear of legal ramifications.

As a result, according to Nosova, the government may not wish to ban citizens from trading in cryptocurrencies entirely. Still, the unclear standpoint may cause them to deviate from it. Nosova also makes it clear that no compromise had been reached on the much-talked-about bill and that the politicians who are attempting to formulate the law, continue to remain in dispute with the officials from the Central Bank of Russia, who want to uproot cryptocurrencies from the country once and for all.

That said, Nosova did highlight a positive side to the story by stating that the government approved cryptocurrencies, which the regulators rule to qualify as derivatives, may finally see the light of the day as their trading could be authorized in some exceptional cases.