Cryptocurrency ban in Russia could destroy tech industry: Telegram app CEO Pavel Durov

Cryptocurrency ban in Russia could destroy several technology industries and drive IT professionals abroad, said Pavel Durov, CEO and co-founder of the Telegram app.

Russia’s proposed ban on cryptocurrencies could destroy several technology industries and drive IT professionals abroad, warns Telegram CEO and co-founder Pavel Durov (REUTERS/Dado Ruvic)

Russia's proposed ban on cryptocurrencies could destroy several technology industries and drive IT professionals abroad, said Pavel Durov, CEO and co-founder of the Telegram messaging app. “The Bank of Russia suggesting a total ban on cryptocurrencies is throwing the baby out with the bath water,” the Russian-born Durov wrote Saturday in his Telegram channel. “None of the developed nations is banning cryptocurrencies.”

Earlier this week Russia's central bank proposed a ban on the creation and use of all cryptocurrencies, citing dangers posed to the country's financial system. The central bank likened cryptocurrencies to pyramid schemes and said they undermined the sovereignty of the nation's monetary policy.

Russia's ban will inevitably slow down blockchain technology development, Durov said.

The proposed rules won't apply to assets held abroad, and people with offshore exchange accounts will still be able to trade crypto, said Elizaveta Danilova, head of the central bank's financial stability department. The regulator also took aim at crypto mining, which it said hurts the country's green agenda and puts Russia's energy supply at risk.