Russia Set To Ban Public Officials From Holding Cryptocurrency

News / 25.01.2021

According to reports, Russian officials have been informed that they must get rid of their crypto-assets before April 1. This is part of the sweeping regulations introduced by the European country in its quest to reduce corruption.

Government Officials Must Relinquish Crypto-Assets

The directive was issued by the Russian Ministry of Labor in a letter dated December 16th and recently published on the Ministry’s website. According to the contents, government officials at federal and local levels are prohibited from owning cryptocurrencies.

“Officials are obliged to alienate digital financial assets issued in information systems organized under foreign law, as well as digital currency, regardless of the country of issue,” the letter says.

Officials were given a time frame to dispose of the savings or investments in cryptocurrencies by April 1st, 2021. The ban was also extended to spouses of government officials and underage children who cannot own digital assets.

The letter also cites the recent law on digital assets, which came into force this January. It recognizes cryptocurrencies as property and prohibits using them to pay for goods and services in the country. The law is the first comprehensive regulation on crypto assets and includes key amendments. One example prohibits government officials from opening accounts in foreign banks and buying financial products from foreign countries.

With this latest directive, crypto-assets have been added to the list of prohibited financial instruments. Therefore, government officials will be required to diversify their digital assets before April 1st, 2020. It is unknown how strict the rules will be enforced as this is the first year of the new law. Nevertheless, this can be considered as a major blow towards crypto adoption in the European powerhouse.

Crypto Regulation Gaining Momentum Globally

Cryptocurrency regulations have been the subject of many regulatory agencies globally. The unique nature of this digital asset has posed significant problems as they confound traditional financial norms. However, there has been a renewed effort in recent years to draft conventional laws to regulate crypto-assets. This has caused controversy within the crypto community, with some stakeholders believing that regulation is great for the sector.

Microstrategy CEO Michael Saylor is of a similar opinion and expressed this in a recent interview. “As for the regulated entities that are interested in Bitcoin, I think it will simply accelerate the massive influx of institutional money into Bitcoin.” He said

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.