Russian Ministry of Finance proposed two pieces of legislation that regulate cryptocurrency. These drafts are due to be made available for public discussion, which is expected to go on until March 18. According to media reports, Bank of Russia is working on alternate bills.
Russian Ministry of Finance will open consultations on new crypto legislation
Russia’s finance ministry has started drafting two new bills to comprehensively regulate cryptocurrencies and related activities in the country. The treasury department proposes a new law “On Digital Currency” and a bill to amend other legislative acts in connection with it.
According to Russian federal portals for regulatory drafts, these texts have not yet been published. RBC, a business news outlet reported that the consultations would then begin and last until March 18. After earlier this month’s announcement, the Ministry of Finance (Russia) and the Central Bank of Russia (Russia) were charged with creating new crypto legislation.
The two institutions have been at loggerheads over the future of cryptocurrencies in Russia, with the CBR proposing a ban on а wide range of coin operations, including issuing, trading and mining, while Minfin has lobbied for legalization under strict rules. The federal government approved a plan to regulate the crypto space based on the Treasury’s concept.
Meanwhile, media reports have unveiled that Bank of Russia has prepared its own legislative proposals tailored to prevent the issuance, circulation, and use in payments of “private digital currency” in the Russian Federation. According to RIA Novosti’s reports, violations of the restrictions could result in fines as high as 1 million rubles (13,000).
Tass, which claims to have the documents, quotes a source from the financial industry who told the news agency that the central bank’s draft laws have been provided to the finance ministry. The monetary authority states in an explanation note that penalties should be applied to individuals and entities involved in prohibited activities.
It also proposes to ban information dissemination about the currency type and the related activities. The CBR further suggests that banks, other financial institutions and entities operating within Russia’s national payment system should be prohibited from holding cryptocurrencies under threat of administrative action, while crypto-related transfers on behalf of persons should be rejected.
Bank of Russia’s proposals reflect its hardline stance on cryptocurrencies which has put it in isolation among government institutions in Russia, most of which favor regulation over prohibition. These proposals come shortly after its pilot phase for its central bank’s digital currency (CBDC). CBR completed the prototype platform in December. This week, the CBR revealed that it had successfully executed the first digital ruble transactions with commercial banks who participated in the trials.
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