The Central Bank of the Russian Federation does not understand the concept of national …


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The Central Bank of the Russian Federation does not understand the concept of national ...

The Central Bank of the Russian Federation does not understand the concept of a national mining pool – RAKIB

  • RAKIB rejected claims of the Central Bank of the Russian Federation on the use of the national mining pool for criminal purposes

  • The country’s regulator saw a tool for financing terrorism through mining

  • The Association urged the regulator to hold a conciliation meeting

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The blockchain association does not see the prerequisites for criminal activity with the help of the project, which were previously announced by the country’s central bank

The Russian Association of Cryptocurrencies and Blockchain (RACIB) doubts that the Central Bank of the Russian Federation understands the essence of the concept of the National Mining Pool (NMP). According to the statement of the President of RACIB Yuri Pripachkin, the motives and arguments of the country’s regulator “have nothing to do” with the IMA.

The Central Bank of the Russian Federation does not understand the concept of national ...

In a letter to Ivan Zimin, Director of the Financial Technologies Department of the Bank of Russia, Pripachkin emphasizes that the IMP project is not a payment system using cryptocurrencies, and, accordingly, there is no opportunity for money laundering..

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According to Pripachkin, the IMP’s work model is structured as follows: energy resources → electric power → computing resources → digital currency → foreign exchange earnings → distribution of income among participants in the Russian ruble → tax revenues to the budget.

“In fact, we are talking about the formation of a new export-oriented industry that will allow Russia to provide a real breakthrough into the global labor division market. The implementation of the project will make it possible to quickly realize the unused surplus of electricity with the creation of additional jobs without attracting budget funds or any tax incentives, “said the President of RACIB.

The implementation of the NRM even in the context of a regulatory “sandbox” will allow in the next one and a half to two years to ensure the flow of “several billion US dollars” into the country, the head of the Association added..

Terrorist financing threat

At the end of September 2020, the Central Bank of the Russian Federation sent a letter to RACIB, in which it outlined the main claims against IMA, including the inability of the project to resist money laundering and terrorist financing (AML / CFT) through crypto exchanges in jurisdictions with weak regulation.

“… if a crypto exchange is selected in a jurisdiction with low AML / CFT requirements, the platform operator will be able to facilitate the conversion of cryptocurrency obtained as a result of illegal activities under the guise of a cryptocurrency obtained legally – as a result of mining – into fiat currency, which will then be paid to clients in the form of legally earned income, “Zimin said.

The President of RACIB notes that such statements have nothing to do with the IMA, since “all transactions within the pool are carried out in a non-cash form with the participation of a credit institution that is a subject of AML / CFT legislation”.

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The Central Bank of the Russian Federation does not understand the concept of national ...

The Association has already called on the representatives of the Central Bank of the Russian Federation for a conciliation meeting.

At the beginning of 2018, RAKIB initiated the creation of a national mining pool called MineRussia, with the help of which domestic miners could combine computing power for mining cryptocurrencies.

Let us remind you that earlier the President of RACIB said that the existing regulatory sandboxes “will not give an opportunity to create the fintech component of our life.” The head of the Association also called “digital sabotage” the policy of the regulator, which is actually “throwing [the country] out of the race [on digitalization]”.

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