Prime Minister Mikhail Mishustin and Russia’s Ministry of Economic Development have expressed support for efforts to regulate and integrate cryptocurrencies into the country’s economy. The support comes amid mounting sanctions over the war in Ukraine. These restrict Russia’s access to global finances.
The Ministry of Finance Is Trying to Legalize the Russian Crypto Space
Russian authorities are taking steps towards a comprehensive legal framework for cryptocurrencies, despite continued opposition from the central bank. The move by the Treasury Department, which advocates legalization, is gaining support from other government agencies and officials, all the more so as Russia faces unprecedented sanctions. For example, financial constraints.
At the beginning of February, the federal government announced that it had approved Minfin’s regulatory concept. Subsequently, the ministry submitted a new bill. The proposal deals with digital currencies to fill the regulatory gaps. The gaps remained after the Digital Financial Assets Act came into effect in January 2021.
Russian Prime Minister Mikhail Misgustin responded to efforts to adopt a special arrangement for cryptocurrency operations. He was quoted on Friday as stating that the government has looked at the proposal in great detail. At a meeting with lawmakers from the Liberal Democratic Party of Russia (LDPR) in the State Duma, he elaborated on the proposal:
Obviously, the mechanism for the circulation of digital currencies will have to be integrated into the country’s financial system.
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Regulate crypto mining
At the same time, Mishustin stressed that the relevant issues can only be resolved with the cooperation 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.
The CBR wants to ban a wide range of crypto-related activities. This includes the issuance, trading and mining of digital currencies. The Russian prime minister revealed that his cabinet is ready to regulate operations like crypto mining.
It was detailed in concept. It has been approved by us. According to a government press release, Mikhail Mishustin said.
Earlier this week, Minfin’s bill was also supported by the Russian Ministry of Economic Development, which wants to help finalize the bill. Bitcoin mining, cryptocurrency payments and the requirements for digital asset exchange operators need further clarification. According to the department, which is also waiting for feedback from the Ministry of Finance.