Crypto Ban Proposed by Bank of Russia Met With Opposition in Parliament, Government – Regulation Bitcoin News

The central bank’s push for a restrictive policy regarding cryptocurrencies is not gaining support among members of the Russian government, legislature, or law enforcement. According to lawmakers, a blanket ban on crypto, such as the one proposed by banks, would be laughable in Russia.

Bank of Russia’s Hardline Stance on Crypto Rejected by Other Russian Institutions

The Central Bank of Russia’s lobbying for prohibitive legislation on cryptocurrencies has not been met with understanding by other government bodies, Russian media revealed. A consultation paper was published by the regulator last week, urging a broad ban on cryptocurrency activities. This includes the exchange, mining, and use of crypto coins.

Lenta.ru reported that Russia’s parliament, government and law enforcement agencies, such as the Ministry of Internal Affairs and Federal Security Service, are not ready to endorse the proposals of a monetary authority. Lenta.ru also quoted two members of State Duma.

A working group at the lower house of parliament is now discussing proposals to fill the regulatory gaps remaining after the law “On Digital Financial Assets” went into force in January 2021. The group includes representatives from various government agencies. They claim the CBR’s view about cryptocurrencies is no longer in isolation.

Anatoly Ashakov, the head of the Financial Market Committee and Andrey Louvoy, the deputy chairman, both accused the bank for misinterpreting the legislation. “It is quite obvious that we are talking, among other things, about cryptocurrencies – about bitcoins, about ethereums, about litecoins, about anything,” Lugovoy emphasized.

Russia could become the laughingstock of Deputy Warns

Andrey Lugovoy stated that Russian lawmakers have attempted to legalize new industries since before the adoption of the bill on digital assets. This includes for tax purposes. While a draft bill regulating crypto-taxation was approved by the Duma on its first reading, the Bank of Russia has blocked its final adoption. They have also rejected all amends to the proposed law.

Anatoly Aksakov insists that no one has yet stopped cryptocurrencies. He views the central bank’s report on the matter as only a ground for further discussions. Financial Market Committee’s head has called for crypto mining to be legalized. This would mean that the activity should be classified as an industrial one and taxes accordingly.

Lugovoy added that Bank of Russia’s position is not fully substantiated and expressed his opinion that it’s impossible to prohibit the circulation of cryptocurrencies. “Let those who want to ban explain to us how they plan to do this from a practical standpoint, so that we do not act as a laughing stock for the whole world,” he urged.

Is it possible that Bank of Russia may change its view on crypto regulation? Leave your comments 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.