The finance ministry announced that the Russian authorities will not allow cryptocurrency lending. This clarifies its plans for regulation of crypto markets. Russian investors will not have access to all cryptocurrency under the new rules, according to the treasury.
Russian government restricts investor access to crypto assets
Moscow authorities aren’t planning to allow loans in cryptocurrency, or use it as collateral. This is what the Ministry of Finance stated in an explanation note to their regulatory proposal. The department’s concept was recently approved by the federal government to form the basis of Russia’s legal framework for the crypto sector.
Market participants are required to properly inform the public about digital currencies’ increased risk. According to Tass news agency, Russian regulators intend to place restrictions on advertising crypto-related products or services.
According to the department, officials should consider restricting the amount of cryptocurrencies that can be traded in Russia. This will protect investors. The ministry states that foreign crypto exchanges do not verify crypto projects, which allows coins from fraudulent schemes or financial pyramids to list.
Instead, licensed exchanges can regulate the circulation of crypto assets. This will allow Russian citizens to access the best-known and most established cryptocurrencies.
The finance ministry also wants non-residents to be able to buy cryptocurrency from both foreign and domestic-registered exchanges for digital assets that are registered in Russia. These investors must withdraw funds via authorized local banks.
Russian authorities are now working to adopt comprehensive regulations for the country’s crypto space. Other government institutions rejected a proposal from Bank of Russia for a blanket ban against crypto operations. Most of them sided with finance ministry and favor strict regulation.
To prepare the draft law that implements the approved regulatory plan, the central bank has been assigned to the Treasury department and the central banking. Expect the adoption of new legislation by State Duma lawmakers during spring session.
Are you positive that Russia will establish a complete regulatory framework to regulate cryptocurrencies before the end of this summer? Please share your thoughts in the comment section.
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