In the last few months, Russia has remained quite active in dealing with cryptocurrencies. There are mixed views about the use of crypto in the country. The Russian Finance Ministry and President Putin have a crypto-friendly stance whereas the Central Bank is strictly against the concept. The Central Bank of Russia had demanded a complete ban on crypto. However, the Russian Finance Ministry is not having any of it.
In a recent development, the Russian Finance Ministry asked for legislative proposals on crypto by the Central Bank. The ministry said that it is planning to consider these suggestions to pave the way for crypto legislation. However, the dispute between the high-level state authorities is heating up as the Ministry has now submitted a legislative proposal to the government. This proposal contradicts the suggestion of the Central Bank.
Russian Finance Ministry moves to establish a legal crypto market
The ambitions of the Russian Finance Ministry are quite clear, as they speed up the crypto legislation process. The ministry categorically states that it is better to regulate the use of crypto than to impose a straightforward ban on them. Moreover, the Ministry is planning to allow the use of crypto as an investment class but not as a payment gateway.
However, the Central Bank is continuously proposing a ban on crypto trading and mining. It states the emergence and growth of crypto is a direct threat to the country’s financial stability and independence. Under these circumstances, the draft of crypto legislation holds critical significance for the future of crypto in Russia.
The draft is aimed at creating a legal crypto market. It involves suggestions for the sale and purchase of cryptocurrency. It says that customer identification should be made compulsory under the regulatory measures, so the anonymity factor of cryptocurrencies is nullified. Another point of the proposal was to issue licenses to foreign crypto exchanges for their operations in Russia.
Moreover, it was also proposed that a financial literacy test should be held to determine the eligibility of individuals to invest. Russians who pass the test could invest up to 600,000 roubles annually. However, those who fail the test will only be allowed to invest 50,000 roubles per year.
On the other hand, the Central Bank of Russia is also opposed to the idea of crypto mining. It believes that it consumes a lot of energy and is highly unsustainable. The Russian Finance Ministry, however, plans to legalize crypto mining by imposing taxes and charges.
