Institutional Investors in Russia Are Hungry To Bitcoin, But The Central Bank Will Not Give Up

Oliver Hughes, CEO of digital bank Tinkoff, says that "Russian investors who know what they're doing" are willing to invest in Bitcoin. Unfortunately, the central bank's tough stance on digital assets prevents banks like Hughes from offering such services. Hughes, St. Russia offers up to 3 years in prison for undeclared crypto wallets, "There is currently no mechanism in Russia to offer this product to them because the central bank is in a very difficult situation," he told CNBC during the St. Petersburg International Economy. acknowledged that his concerns about the use of crypto for money laundering are relatively reasonable. Digital assets could pose significant financial risks to retail traders, who are "seeing cryptos blazing at the moment and perhaps making poor investment decisions," he said. He argued that this is not the case for professionally qualified investors. He hopes the industry will eventually address the central bank's concerns about money laundering and investor protection. Speaking to Decrypt, lawyer Nikita Soshnikov, former director of the CIS office of multinational law firm Deloitte and CEO of cryptocurrency exchange Alfacash, said that while cryptocurrencies are not illegal in Russia – although banned as a payment method – there are really few He stated that he was worried. Policy makers should be held accountable. “I think the central bank's predicament can be explained in the first place by new guidelines on suspicious transactions, including cryptocurrencies, which could serve as a basis for a bank account suspension,” he said. In addition, Soshnikov added that there are currently no legal provisions in Russia that can be used to regulate and address money laundering via cryptocurrencies. He reiterated the Russian central bank's concerns and stated that there is clearly no mechanism to protect investors, especially the unskilled.

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