Prime Minister Mikhail Mishustin and Russia’s Ministry of Economic Development have supported efforts to regulate and integrate cryptocurrencies into the country’s economy. The support comes amid mounting sanctions over the war in Ukraine that are limiting Russia’s access to global finances. Finance Ministry Pressure To Legalize Russian Crypto Space Is Gaining Traction Russian Authorities […]
Prime Minister Mikhail Mishustin and Russia’s Ministry of Economic Development have supported efforts to regulate and integrate cryptocurrencies into the country’s economy. The support comes amid mounting sanctions over the war in Ukraine that are limiting Russia’s access to global finances.
Finance Ministry Pressure To Legalize Russia’s Crypto Space Is Gaining Traction
Russian authorities are moving towards adopting a comprehensive legal framework for cryptocurrencies, despite continued central bank opposition. The Treasury Department’s approach to promoting legalization has gained support from other government agencies and officials, especially as Russia faces unprecedented sanctions, including financial restrictions.
At the beginning of February, the federal government announced its approval of Minfin’s regulatory concept. Subsequently, the ministry introduced a new draft “On Digital Currency” bill to fill the regulatory gaps that remain after the enforcement of the “On Digital Financial Assets” Act in January 2021.
Commenting on efforts to adopt a special regime for cryptocurrency operations, Russian Prime Minister Mikhail Mishustin was quoted on Friday as saying that the government has reviewed the proposal in detail. During a meeting with Liberal Democratic Party of Russia (LDPR) lawmakers in the State Duma, he explained:
Of course, it will be necessary to integrate the mechanism for the circulation of digital currencies into the financial system of the country.
At the same time, Mishustin stressed that the relevant problems can only be solved with the participation of the Bank of Russia (CBR). According to him, the central bank should assess the risks that cryptocurrencies pose. In January, the monetary authority proposed a blanket crypto ban, citing risks to the financial stability of the country and its citizens.
While the CBR wants to ban a wide range of crypto-related activities, including issuing, trading and mining digital currencies, the Russian prime minister revealed that his cabinet is ready to regulate operations such as crypto mining. “It was detailed in the concept. It has been approved by us,” concluded Mikhail Mishustin, according to a press release from the government’s press service.
Earlier this week, Minfin’s bill was also supported by the Russian Ministry of Economic Development, which aims to help finalize the bill. Bitcoin mining, cryptocurrency payments and the requirements for operators of digital asset exchanges need further clarification, the department said, noting that it is still awaiting feedback from the Treasury Department.
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