Russia’s Ministry of Finance has drafted a bill on crypto regulation. It has received a proposal from the country’s central bank and would consider it in deciding the crypto regulation. It said considerations depend on whether or not the proposal is in line with the ministry’s approach.
The Ministry of Finance has made changes in an effort to create a legal market for digital currencies with the establishment of the rules for their circulation. It highlighted the parliament’s adoption of the new bill would prompt the judiciary to take up crypto as an investment tool. However, this seems to contradict the use of cryptocurrencies as a means of payment.
If taken ahead, this could put an end to the differences between several authorities in Russia, most notably between the Central Bank of Russia and the Ministry of Finance. Analysts have highlighted that the Finance Ministry called for the proper regulation of crypto activities in the country, including mining and trading. But the Central Bank has been pushing for a blanket ban. Its stance is due to the threat that digital currencies pose to the country’s financial stability. Moreover, the central bank sees crypto as a potential impediment to the CBDC ruble.
Because of the differences of thoughts and voices, President Vladimir Putin had ordered the respective authorities to find a consensus. As such, through the draft bill, the Finance Ministry seeks to provide a legal market for digital currencies. Some of the suggestions include customer identification in transactions in regards to the sale and purchase of digital assets. But this also negates anonymity.
A recommendation has been made about obtaining licenses to operate in Russia. Furthermore, domestic exchanges have to follow corporate rules and regulations.