One of Russia’s top regulators believes that the sanctions relating to cryptocurrencies that have been placed on the nation and its people are an example of “digital fascism.”
The remarks follow the latest round of sanctions imposed on Russia by the European Union, which includes a complete prohibition on all cross-border crypto transfers from Russia to the EU. Earlier this month, the EU declared that it wants to take things a step further. Previously, the EU had sought to impose limits on the value of cryptocurrency transactions made to Russian crypto wallets.
Russia Will Bypass Crypto Sanctions
But, according to Ivestia, President Vladimir Putin’s anti-money-laundering body Rosfinmonitoring has criticized the measures. Herman Negliad, the country’s Secretary of State and the Deputy Director of Rosfinmonitoring, stated at a legal event on October 20 that Russia will “bypass” the EU’s crypto-related penalties in addition to labelling them an instance of “digital fascism”
The government would “provide firms the ability to carry out cross-border settlements,” Negliad continued. Moscow was prepared to aid merchants, he continued, and would “give” them with “assistance” that uses “cryptocurrencies, the digital ruble, or a hybrid of these forms [of payment].”
The Ministry of Finance also offered its opinion on the subject, adding that it didn’t believe the most recent EU action would endanger any Russian cryptocurrency wallets. The ministry has in the past asserted that cryptocurrency is important to global trade.
Russian CBDC Coming Soon
In direct response to Western sanctions, the country is reportedly moving quickly to implement its central bank’s digital currency, and the finance ministry and the Central Bank have stated that trading companies are effectively free to do their business in cryptocurrency if necessary.
Even before the conflict with Ukraine, Moscow authorities openly discussed the necessity to wean the Russian economy off of its reliance on the USD and discussed the role the upcoming digital ruble would play in this effort.
The head of the State Duma’s Committee on Financial Markets and the creator of Russia’s crypto-related legislation, Anatoly Aksakov, also slammed the most recent EU penalties pertaining to cryptocurrencies.
At the same forum, Aksakov reportedly said the following:
“Blockchain technology is difficult [for states] to control. It is difficult to identify the origin of participants on a blockchain network. And many users will be able to circumvent sanctions.”
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