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.
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.