Facebook’s Cryptocurrency ‘Libra’ will not be recognized in Russia

russian government

Last Updated on

While the international stage awaits the launch of Facebook’s cryptocurrency, Libra, in the next week, a statement made by the Chairman of the Russian State Duma Committee on Financial Markets, Anatoly Aksakov, revealed that Russia would not recognize this cryptocurrency and the trading of this would be illegal.

The main reason for this decision as offered by Aksakov is that the launch of Libra could be seen as a danger to the economic structures of Russia.  Facebook has announced that the planned date for the launch of Libra is 2020.

Aksakov went on to say that there will be no consideration by Russia to regulate online cryptocurrency trading, which allows for an avenue for the operation of digital crypto exchanges, platform, and blockchains. In contrast to the message given by Aksakov, Alexei Moiseeve, Deputy Finance Minister announced that in a major step forward, the proposed cryptocurrency legislation “On Digital Financial Assets,” could be accepted in the next fortnight.

How can people purchase Libra?

The purchasing of Facebook’s cryptocurrency, Libra, can be done on overseas financial programs. There will be severe limitations on the setting up of like-minded systems in Russia.

Aksakov states that there is speculation that various forms of trading platforms and opportunities to transact in these currencies could be established.  It is his view that Russia will restrict the establishment of these internet webs or at best, forbid them. In a further statement, he made it clear that any persons intending to take advantage of these options based on legislation outside the confines of Russia, would be doing this at his/her peril.

International concerns about Libra

The announcement by Facebook yesterday about their proposed launch of cryptocurrency Libra in 2020, has given rise to the concern of several countries. Chairperson of the United StatesHouse of Representatives’ Financial Services Committee, Maxine Waters, was categorical in her statement asking that Facebook cease the development of its cryptocurrency.

Facebook has been at the forefront of the news in recent times and has received a great deal of negative publicity, which has proven detrimental to the company. Maxine Waters addressed Facebook and asked that they agree to the suspension of their programming plans for the cryptocurrency until Congress and legislators have reviewed the matter.

In France, Bruno Le Maire, Minister of the Economy and Finance, stated that Facebook would need to provide the necessary surety for Libra.  Le Maire said that Libra was not meant to be controlled by private companies beholden to private shareholdings, but that is was, in fact, a credit to the States’ jurisdiction and as such, should be controlled by them.

Facebook has made available the official report for Libra which details of how the coin will operate.  Libra will function on the Libra blockchain that can be updated based on demand.  There will also be a solid pool of resources which will aim at giving inherent value to the product, lessening the probability of erratic changes.

Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

About Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.