Binance plans to expand into Russia despite legislators proposing to ban cryptocurrency. The Central bank has given its reason for the ban as a threat to the well-being of Russians and financial stability.
Russia’s regulations will influence neighboring countries
According to the Director of Binance in Eastern Europe, Gleb Kostarev, crypto could be vital for Russia’s economic development. Countries in Eastern Europe such as Uzbekistan, Kazakhstan, and Ukraine have been more accepting of digital currency. Binance’s goal is to get a license and operate where legislators will let them.
Kostarev adds that the region is waiting for Russia to set regulations. If the country makes progressive laws, which Binance expects, other countries could follow suit.
Russia has an interest in regulating the cryptocurrency market in the country. Its cryptocurrency transactions each year amount to $5 billion. Moreover, the country is now more skeptical of the industry going as far as to propose a ban on trading and mining. The reason is that regulators see cryptocurrency as a way to finance terrorism or money laundering schemes.
The bank pointed out that cryptocurrency has the characteristics of a pyramid scheme as its growth is determined by demand. It warned that this instability threatens the financial stability of the public and the whole economy.
The central bank supports crypto-related technology
However, this stance is only held by Russian regulators as other government departments, and the public does not agree to ban crypto. They instead argue for a more lenient approach. The president of Russia, Vladimir Putin, has urged the Central Bank and government to decide.
Putin has assured the public that the Central Bank will not prevent Russia’s technological development. Instead, it is finding ways to integrate the newest technologies from this sector. The Ministry of Finance adds that it is setting up regulations on the sector and that crypto should have a chance to grow.
Kostarev has stated that the proposed ban is harsh. However, Binance takes this as a chance to dialogue with the regulator. He views Russia’s ultimate decision as brutal since it will affect neighboring countries.
Russia currently allows using crypto for transactions. However, the public cannot use it to make purchases.
