Russian Regulators Find Common Ground — Bitcoin Can’t Be Used for Payments – Regulation Bitcoin News

Although Russian authorities still have not reached a consensus about the future of cryptocurrency, government agencies are united in opposing the ban on bitcoin payments. Representatives of Russian businesses have disclosed that other operations involving digital assets will be allowed and regulated.

Russian Central Bank and Finance Ministry agree to prohibit crypto payments

The Central Bank of Russia, the Ministry of Finance and the government have converged on the question of how to regulate Russia’s crypto space. After a discussion on digitalization, Alexander Shokhin of the Russian Union of Industrialists and Entrepreneurs (RSPP), said that decentralized digital currencies would not be accepted for payment.

Bank of Russia demanded a broad ban on all crypto-related activity, including its use in payment, exchange, mining, and other transactions. Other institutions opposed the hardline proposal, including finance ministry. It had its own ideas about how cryptocurrency should be handled. Siding with the treasury’s stance, the federal government adopted a plan which favors regulation over prohibition.

“It is already clear that both sides in this discussion have generally come closer. In particular, if we are talking about prohibitions, then that is rather about a ban on the use of cryptocurrency as a means of payment, while other aspects are subject to regulation,” Shokhin was quoted as saying by the daily Izvestia. The government approved regulation concept allows coins to be exchanged and bought.

Vladimir Potanin, co-chairman of RSPP’s Coordinating Council and president of Nornickel, noted that the regulatory bodies are still seeking agreement on the details of Russia’s crypto framework but he emphasized that all of them support a ban on the use of cryptocurrency as a legal tender.

“The business community has reached an understanding with the government, the central bank and lawmakers that cryptocurrencies are more complicated and difficult to regulate than digital financial assets,” the billionaire elaborated, quoted by Forklog.

While regulating certain aspects of the crypto economy such as the issuance of tokens, the Russian law “On Digital Financial Assets,” which went into force in January of last year, left many unanswered questions. An working group from the State Duma (the lower house of Parliament) is currently preparing legislation that will fill in the gaps.

A new law introducing comprehensive rules for the circulation of cryptocurrencies in Russia, based on the finance ministry’s proposals, is expected by Feb. 18. Anatoly Aksakov, chairman of the Financial Market Committee, announced earlier this week that the draft was already in his possession. The draft will be approved by deputies during the Duma spring session.

Do you expect Russia to regulate cryptocurrencies by the parliament’s summer recess? Comment below.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.