Russia plans to regulate cryptocurrencies by 11 February

The Russian government, which is having an ongoing discussion on the future of decentralized digital currency in Russia, is expected to produce alternative scenarios for regulating cryptocurrencies by 11 February. The development was disclosed in the records of a meeting held in Moscow last week. A clash between two rival points of view is likely to decide the future of cryptocurrencies in Russia. While the Central Bank of Russia suggests a general ban on cryptocurrency-related activities, the Ministry of Finance is advocating legalization under strict rules and without recognizing bitcoin as a payment method.

The latter position has received the most support and, if adopted, will ensure that Russians who own digital money can trade with it as well as with investment businesses, can transact through Russian banks and pay taxes. All this, of course, under the watchful eye of the government. In January, Finbold reported that the Central Bank of Russia proposed that the trading, mining and use of cryptocurrency are totally illegal. However, the Ministry of Finance insists that a differentiation be made between "white" and "black" market activities.

The ban recommended by the Russian Central Bank on cryptocurrency-related activities has sparked reactions from the country’s leading figures, including former President Medvedev and current President Putin. Medvedev argued that the ban could have a negative impact on the system, suggesting that banning something often leads to opposite results. President Putin added that the Central Bank cannot "hinder technological progress" and should make adequate efforts to introduce the latest technologies in this area. The Chamber of Commerce urges the government to recognize mining as a business.

In response to the Ministry of Finance's plan to elevate crypto-related businesses to legal territory, Sergey Katyrin, president of the Russian Chamber of Commerce and Industry, proposed that the legal status of cryptocurrency mining be determined as a "type of business. , which makes it possible to exclude this activity from the 'gray zone' ", guaranteeing fiscal and other mandatory compensations. Observers will closely monitor proposed cryptographic legislation scenarios to see if they have a positive or negative impact on Russia’s adoption of cryptocurrency.

by Alessandro Crea

Thursday 10 February 2022 17:00


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