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Russian Prime Minister and Ministry of Economy Support Cryptocurrency Legalization – Regulation Bitcoin News

ByHazel R. Lang

Mar 27, 2022

Prime Minister Mikhail Mishustin and Russia’s Ministry of Economic Development have backed efforts to regulate cryptocurrencies and integrate them into the country’s economy. The support comes amid growing sanctions over the war in Ukraine, which are restricting Russia’s access to global finance.

Finance Ministry push to legalize Russian crypto space gains traction

Russian authorities are moving towards adopting a comprehensive legal framework for cryptocurrencies, despite continued opposition from the central bank. The Finance Ministry’s approach, which favors legalization, has won support from other institutions and government officials, especially now that Russia faces unprecedented sanctions, including financial restrictions.

At the beginning of February, the federal government announced its approval of Minfin’s regulatory concept. Then, the ministry submitted a new draft law “On Digital Currency” aimed at closing the regulatory gaps remaining after the law “On Digital Financial Assets” came into force in January 2021.

Commenting on efforts to adopt a special regime for cryptocurrency operations, Russian Prime Minister Mikhail Mishustin was quoted on Friday as saying that the government had considered the proposal in detail. In a meeting with lawmakers from the Liberal Democratic Party of Russia (LDPR) at the State Duma, he explained:

Of course, it will be necessary to integrate the circulation mechanism of digital currencies into the country’s financial system.

At the same time, Mishustin stressed that the relevant issues can only be resolved with the participation of the Bank of Russia (CBR). According to him, the central bank must assess the risks created by cryptocurrencies. In January, the monetary authority proposed a blanket ban on crypto, citing risks to the country’s financial stability and its citizens.

As the CBR seeks to ban a wide range of crypto-related activities, including issuing, trading and mining digital currencies, the Russian Prime Minister has revealed that his cabinet is ready to regulate operations such as crypto mining. “It was detailed in the concept. It has been approved by us,” concluded Mikhail Mishustin, according to a statement from the government press service.

Earlier this week, the Minfin bill was also backed by the Russian Ministry of Economic Development which wants to help finalize the legislative proposal. Bitcoin mining, cryptocurrency payments and requirements for operators of digital asset exchanges need to be clarified, the department said, noting that it is still awaiting comments from the Ministry of Finance.

Keywords in this story

Bank of Russia, Bitcoin, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, Ministry of Economy, Ministry of Finance, Law, Premier Legislators, Legalization, Ministries, Ministry, Mishustin, Regulations, Regulations, Russia, Russian , Sanctions, State Duma

Do you expect the sanctions to motivate Russia to quickly adopt comprehensive regulation for its crypto space? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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