Russia is going through economic sanctions. Because of the Russo-Ukrainian war, it is penalized by more than 30 Western countries. A part of the financial embargo is blocking transactions with foreign countries. It cost Russia $50 billion a year.
The possibilities of using cryptocurrencies are recognized as a way to mitigate the effects. It allows foreign businesses to commerce with entities in Russia without being detected. For that reason, the number of cryptocurrency beneficiaries ballooned.
Cryptocurrency is still not entirely legally regulated and that may cause trouble. Russian authorities consider that there is a need of recognizing it as a kind of property. Also, they say it is important to give it status under the law. Reportedly, it might allow crypto technology to develop. The goal is not to harm the state’s interests.
Russia is the second in the world for cryptocurrency mining. A lot of crypto transactions are made there. The government expects of lawmakers to contemplate minimizing the risks of exploiting vulnerabilities of digital assets.
NECESSITY OR THE CONTROL ATTEMPT?
The Prosecutor General is asking legislators for legal changes. It should be in terms of crypto service providers must be obligated to register in Russia. They should give information about their users to security agencies when required.
A big public discussion is opened about this unpopular proposal. The option of sharing personal info with the government for sure will cause mistrust among crypto users. It seems contentious. It is important to understand that digital currencies are popular for their advantages, especially for guaranteeing anonymity. Providing transactional info to centralized authorities is against the nature of the idea of decentralized currency. It might lead to unduly control attempts and this is what the legislator should pay attention to.
INVOLVING CRYPTO IN CRIMINAL LEGISLATIVE
It is not a secret that digital currency criminality is rising. In 2022, the global total of illegal activities was worth $20,1 billion. Cryptocurrencies are often connected to shady investments. The problem is it’s hard to track the transactions made this way.
The idea is to allow prosecutors and investigators to open their crypto wallets. For gaining control over the criminal proceeds, authorities must have the option to transfer it to the agency’s wallets. It must be seized as digital property, the same as any kind of property. Changing legislation will allow the cryptocurrencies might be frozen and confiscated, and to become considered an asset in the proceedings. Only that way it can be sold for the benefit of the state.
Permitting investigators and prosecutors in the criminal process to open their cryptocurrency wallets is already accomplished in Europe and the U.S. It was expected to be Russia’s next step too.
Anyway, cryptocurrencies became an important part of our lives. It deserves to be regulated as long as it does not intrude on the user’s rights. Crypto’s rebel spirit mustn’t be decreased, at any cost.