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Russian authorities propose contradictory plans for crypto regulation

Updated: Jul 25, 2024
Published: Feb 18, 2022
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The Ministry of Finance of the Russian Federation has officially started working on a draft law regulating cryptocurrencies contradicting the Central Bank's call for a blanket ban.

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Russian Finance Ministry wants to regulate crypto

The Russian Finance Ministry filed two development notices on Thursday announcing the start of the development of a legal framework for activities related to transactions with digital currencies and their issuance. It appears that the Finance Ministry is taking a different approach here than the Bank of Russia, which has proposed restricting cryptocurrency trading and mining out of concern for financial instability and considers cryptocurrency regulation unfeasible.

Finance Minister Anton Siluanov told state-run TV channel Rossiya 24 on Friday that he hoped the disagreements could be resolved and a law regulating cryptocurrencies could be passed by the end of the year. Siluanov said his ministry has proposed identifying crypto traders to separate the "white" market from the "grey" market and allow law enforcement agencies to track money flows and transactions involving cryptocurrencies.

Central Bank does not support the ministry's proposals

The ministry has issued a notice titled "On Digital Currency," in which the government launches a public consultation on rules governing transactions in digital assets and asks for suggestions from financial market participants, citizens, and legal entities. The second notice outlines a similar process for potential changes to other federal laws that may be required by "On Digital Currency." The ministry expects to complete public consultations for the crypto bill by March 18.

However, according to a Reuters report, the central bank does not support the ministry's legalization proposals and wants to ban the issuance and circulation of cryptocurrencies entirely, a position it has long held. The legalization proposals are expected to be released in the next three weeks as the Ministry of Finance is still seeking industry and public opinion.

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