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 growing sanctions over the war in Ukraine that restrict Russia’s access to global finance.
Finance Ministry Push to Legalize Russian Crypto Space Gains Traction
The Russian authorities are moving towards the adoption of a comprehensive legal framework for cryptocurrencies, despite persistent opposition from the central bank. The Finance Ministry’s approach, which favors legalization, has won support from other institutions and government officials, even more so now that Russia is facing unprecedented sanctions, including financial restrictions.
In early February, the federal government announced the approval of the Minfin regulatory concept. So the ministry submitted a new draft law “On digital currency” with the aim of filling the regulatory gaps that remain after the entry into force of the law “On digital financial assets” in January 2021.
Commenting on efforts to adopt a special regime for cryptocurrency trading, Russian Prime Minister Mikhail Mishustin was quoted on Friday as saying that the government has reviewed the proposal in great detail. During a meeting with legislators of the Liberal Democratic Party of Russia (LDPR) in the State Duma, elaborated:
Of course, it will be necessary to integrate the digital currency circulation mechanism into the country’s financial system.
At the same time, Mishustin emphasized that the relevant issues can only be resolved with the participation of the Bank of Russia (CBR). In his opinion, the central bank has to assess the risks that cryptocurrencies create. 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 cryptocurrency-related activities, including the issuance, trading, and mining of digital currencies, the Russian prime minister has revealed that his cabinet is ready to regulate operations such as cryptocurrency mining. “It was detailed in the concept. It has been approved by us,” concluded Mikhail Mishustin, according to a statement from the government press service.
Earlier this week, the Minfin bill was also endorsed by Russia’s 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 that it is still awaiting comments from the Ministry of Finance.
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