Russian Prime Minister, Economy Ministry Support Legalization of Cryptocurrencies – Regulation Bitcoin News

Prime Minister Mikhail Mishustin and the Russian Ministry of Economic Development have backed efforts to regulate cryptocurrencies and integrate them into the country’s economy. The support comes amid mounting sanctions over the war in Ukraine which restrict Russia’s access to global finances.

Finance Ministry’s Push to Legalize Russian Crypto Space Gains Traction

Russian authorities are moving towards the adoption of a comprehensive legal framework for cryptocurrencies, despite the central bank’s persisting opposition. The Finance Ministry’s approach, which favors legalization, has been winning support from other government institutions and officials, even more so now as Russia faces unprecedented sanctions, including financial restrictions.

In early February, the federal government announced its approval of Minfin’s regulatory concept. Then the ministry submitted a new draft law “On Digital Currency” aiming to fill the regulatory gaps remaining after the enforcement of the law “On Digital Financial Assets” in January, 2021.

On Friday, Mikhail Mishustin, Russia’s Prime Minister was quoted as saying that his government had reviewed the proposal thoroughly. During a meeting at the State Duma with legislators from the Liberal Democratic Party of Russia, he explained:

Of course, it will be necessary to integrate the mechanism for the circulation of digital currencies into the country’s financial system.

Mishustin stressed that only the Bank of Russia (CBR) can solve the pertinent issues. He believes that the central banking must evaluate the risk cryptocurrencies pose. In January, the monetary authority proposed a blanket crypto ban, citing risks for the country’s financial stability and its citizens.

Although the CBR would like to ban many crypto-related activities including trading, issuing and mining digital currency, the Russian prime Minister revealed that his cabinet is open to regulating operations such as crypto mining. “It was detailed in the concept. It has been approved by us,” Mikhail Mishustin concluded, according to a release by the government press service.

Earlier this week, Minfin’s bill was also backed by the Russian Ministry of Economic Development which wants to help finalize the legislative proposal. Bitcoin mining, cryptocurrency payments, and the requirements for operators of digital asset exchanges need further clarification, the department said, noting it’s still waiting for feedback from the Finance Ministry.

Are you expecting sanctions to encourage Russia to adopt extensive regulations in its crypto area? Leave your comments below.

Lubomir Tatsev

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.