A member of the Russian State Duma has criticized the central bank’s tough stance on the cryptocurrency industry for ignoring the growing demand for crypto in the country.
Fedot Tumusov, a member of the One Just Russia party that represents the Yakutsk region of Siberia, has criticized the Bank of Russia’s approach to regulating the crypto industry after a plenary session of the State Duma on Tuesday.
In a Tuesday Telegram post, Tumusov outlined the growing need to create an ecosystem that would allow Russian residents to buy cryptocurrencies like Bitcoin (BTC) in the face of increasing demand. The official argued that despite Russia’s enforcement of crypto legislation earlier this year, the Bank of Russia acted negligently and refused to authorize local banks to offer crypto investment services.
Tumusov said central bank governor Elvira Nabiullina spoke openly about the bank’s reluctance to deal with decentralized cryptocurrencies and instead focused on a state-controlled digital ruble. “Reluctance or not, that won’t change the situation. It is necessary not to struggle with reality, but to adapt to it, to respond to the challenges of the time, ”argued Tumusov.
Legislators noted that many countries around the world have clear tax laws and guidelines that allow the industry to thrive. He stated that Russia needs methods to deal with crypto that are not just bans:
“Myopia can be expensive for Russia. Cryptocurrencies are the reality. Either we accept it or we will lose. “
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Tumusov’s comments on crypto come shortly after reports confirmed that large Russian banks like private bank Tinkoff were unable to provide crypto services due to the Bank of Russia’s tough stance on digital assets. Meanwhile, government-backed commercial banks like Sberbank and VTB are largely criticizing the industry, claiming that they don’t like Bitcoin because it’s too risky.
While Russian banks are reluctant to get into digital assets, large crypto companies like Binance have established themselves in the country. According to a June report by the crypto-intelligence company Chainalysis, Russia is the fifth largest country in the world after the US, China, Japan and the UK by its estimated realized Bitcoin recoveries in 2020.