Russia is ready to recognize crypto as a form of currency
Russia is ready to recognize crypto as a form of currency
Crypto

Russia is ready to recognize crypto as a form of currency

By Vincenzo Cacioppoli - 9 Feb 2022

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Well-known Russian newspaper Kommersant revealed this morning that Russia’s authorities have come to an agreement to provide precise regulation of the crypto sector, after months of heated discussions on the subject. 

Russia’s attitude towards crypto

In December, the Central Bank said it was also considering the option of banning cryptocurrencies in the country.

But this decision was strongly opposed by Russia’s finance ministry, which in late January openly called for clear regulation on the digital asset sector, rather than a total ban.

“Regulation is sufficient to protect our citizens”, 

This was stated by Ivan Chebeskov, head of the ministry’s financial policy department, at a press conference on cryptocurrencies. The official had also added that the ministry had prepared a number of proposals for regulations on cryptocurrencies, awaiting the government’s evaluation and approval.

But even Russia’s own leader, Vladimir Putin, was reportedly in favour of regulation in the country of the cryptocurrency sector, which is seen as an area to be considered. On several occasions, the Russian leader has had positive words, both towards crypto mining and cryptocurrencies themselves, which are considered valuable assets.

Russia crypto
The Russian government and central bank have reached an agreement on crypto regulation

The proposed regulation

According to the Russian newspaper, the government, together with the Bank of Russia, seems to have finally found common ground on the issue, and after reaching an agreement on a shared text, it should now present a bill by 18 February to the Duma (the Russian parliament) for approval.

From what we can learn from the first indiscretions, the regulation would consider cryptocurrencies on a par with traditional currencies and not digital assets.

“The establishment of rules for the circulation of cryptocurrencies and control measures will minimize the threat to the stability of the financial system and reduce the use of cryptocurrencies for illegal purposes since a total ban on the segment of transactions related to their circulation is impossible”.

A note from the Russian Finance Ministry reads.

In the note, Ministry officials also reiterated the importance that the regulation will serve as a guarantee for citizens who invest in the sector and who could now be dealing with financially unsound and opaque operators.

“The complete absence of regulation of this sector, as well as the establishment of a ban, will lead to an increase in the share of the underground economy, an increase in cases of fraud and the destabilization of the sector as a whole”.

According to the latest data from the Central Bank, around 17 million Russian citizens own and transact with cryptocurrencies.

 

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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