It’s impossible to ban cryptocurrencies in Russia, the country’s minister of finance has stated in his first comments on his department’s latest disagreements with the Russian monetary authority. While the institutions appear to be unable to agree on crypto regulation, the treasury plans to draft legislation regardless of differences.
There are differences between the Bank of Russia and Finance Ministry regarding future cryptocurrencies
A meeting between the Central Bank of Russia (CBR) Governor Elvira Nabiullina, Russian Finance Minister Anton Siluanov, and Deputy Prime Minister Dmitry Grigorenko — devoted to adopting a common approach to the regulation of cryptocurrencies — has failed to produce the desired results, domestic and foreign media unveiled this week.
According to a report by Bloomberg, quoting knowledgeable sources, the participants have not reached a consensus on Russia’s future policy regarding the crypto space, but merely formalized their disagreements, despite President Putin’s call. There has not been a common ground on the issue of prohibiting the use of Bitcoin and similar payments as a method of payment.
Bank of Russia had proposed in January a blanket ban of operations including issuance, exchange and mining of crypto currencies. It did so because it believed that this would pose a threat to investors and financial stability. However, the federal government has sided with the treasury department’s view that most crypto activities should be legalized and regulated, under strict rules, rather than banned completely, an announcement published on Feb. 8 indicated.
As cryptocurrencies are quite volatile, the ministry thinks it’s necessary to restrict access to these assets for non-qualified investors, suggesting a limit of 50,000 rubles (approx. $650). At the same time, Minfin wants to make them attractive for other investors, according to Siluanov, and considers “controllable” all risks highlighted by the CBR. The finance minister commented on the discord as reported by Forbes and Reuters.
The Central Bank wants to ban cryptocurrencies, arguing that this creates risks, primarily for citizens, can “infect” financial institutions, banks and create an opaque settlement market. It’s the same as banning the internet, which is impossible… We don’t use the methods that China uses.
Russian media earlier this month reported Dmitry Grigorenko had instructed the finance ministry to create new cryptocurrency legislation with the central bank. They were expected to present the bill by February 18. Finmarket reports that the ministry will submit to the government, along with a list of differences, if there are still disagreements with CBR, if necessary.
Siluanov spoke out to warn reporters that delay will hinder development and push the crypto industry into shadows. The Minister of Finance has been informed of the development of the crypto market, and it is necessary to regulate the Russian Federation. Tass quoted his deputy Alexei Moiseev as saying that the draft of the law would be ready by the stated date.
Forbes also reported that the Russian edition had received a second set of amendments for the Russian law in this area. The regulator wants to incorporate a ban on the circulation of cryptocurrencies into the law “On Digital Financial Assets” which went into force in January 2021, only partially regulating crypto-related matters.
Are you optimistic that Russian governments will eventually come to an agreement about the future of cryptocurrency? Comment below to share your opinions.
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