Russia: senior officials are no longer allowed to hold cryptomoney

In Russia, a new law stipulates that senior officials are no longer allowed to hold and use cryptomoney. They have until April 1, 2021 to get rid of the cryptomoney they hold.

Once again, Russia is particularly hostile to cryptomoney and the new regulations imposed by the government on them are astonishing.

On its website, the Russian Ministry of Labour has Ethereum Code notified officials of government bodies that they are now prohibited from possessing cryptomoney. Initially published on 28 December last, the document was discovered and analysed by the local media Forklog.

The document states that the directive applies to all senior officials in the country, both at federal and local level. It concerns all civil servants in the constituent entities of the Russian Federation, such as deputies, mayors of municipalities and any other member of the government.

Members of the Board of Directors of the Bank of Russia and chairmen of state-owned enterprises are also covered. Even more surprisingly, the spouses and minor children of the persons covered by this measure are also covered.

As a result, Russia’s senior officials have until 1 April 2021 to dispose of all the cryptomoney they hold.

This strict regulation follows the introduction on 10 December 2020 of a decree obliging these same officials to provide extensive information on the cryptomoney they hold.

The government does not seem to like the fact that public funds are finding their way into the market for cryptoskills. With the introduction of such a measure, it is hard to imagine that senior crypto-friendly civil servants will join the government in the years to come.

Stricter and stricter control of funds

By this action, Russia maintains its unfavourable position against cryptomonneries. This retreat is not insignificant and proves that the government is not ready to accept the development of the industry on its territory.

However, Russia is aware of the potential of these assets and blockchain technology. The authorities do not hesitate to use them in activities that it is capable of controlling. Last week, a bank belonging to the Bank of Russia notably planned to launch its own stablecoin.

Russia’s past with cryptomoney is somewhat controversial, as the country has tried to regulate and even ban cryptomoney on its soil. Moreover, individuals who do not declare their cryptomonnages may be subject to prison sentences and heavy fines.

As the crypto-currency industry continues to grow at a rapid pace around the world, the Russian population may not benefit from it. As regulations in Russia are becoming more and more stringent and as far as these assets are concerned, getting back on track will be a long and tedious process.