Russian Finance Minister Backs Crypto Regulations Over Outright Ban

On Wednesday, February 16, 2022, the Russian finance government voiced support for cryptocurrency development. The ministry requested government assistance in regulating crypto investment, trading, and mining in Russia rather than outright prohibiting it, as urged by Russia’s central bank.
Russian Finance Minister Backs Crypto Regulations Over Outright Ban
Russian Finance Minister Backs Crypto Regulations Over Outright Ban

Finance Minister not in Support of Crypto ban

Anton Siluanov, Russia’s finance minister, has advised the government not to limit the circulation and growth of cryptocurrencies, emphasizing that they should be authorized and taxed.

Authorities, according to Siluanov, recognized the significance of the rapidly rising digital currency. As a result, the central bank and finance ministry have been on the hot seat for the past year and a half.

Anton Siluanov stated in finance ministry statements that digital cryptocurrency investing should be legalized and taxed rather than prohibited. He recommended banks and exchanges to seek out potential investors and brokers in order to establish well-known, rapidly developing digital assets. The Finance Ministry is producing a draft of procedural suggestions pointing to options for regulating cryptocurrency.

Russian Finance Minister Backs Crypto Regulations Over Outright Ban

Siluanov stated that there have been lengthy discussions between the finance ministry and the central bank on how to regulate digital cryptocurrency and that he believes the government would assist them in solving the issue and moving forward with a solution. “We will take these differences to our superiors and attempt to resolve them,” Siluanov said.

A week ago, Bloomberg reported that Siluanov had approached Prime Minister Mikhail Mushustin about legalizing bitcoin. He believes that legalizing cryptocurrency will eliminate crypto market uncertainty, leading to economic stability and progress.

Furthermore, he claims that legalization will allow the government to set up a framework to maintain a watch on crypto investors.

Bank of Russia not ready to bulge

Earlier this month, Russia’s central bank suggested a blanket ban on mining, trading, and investing in digital cryptocurrency, citing the risk of financial instability.

However, the finance ministry was entirely opposed to the central bank‘s attitude, and Russian President Vladimir Putin eventually requested authorities to find a solution through a census.

Russia’s central bank has asked the government to enforce crypto laws. They might learn from the experiences of other countries, notably China, in dealing with crypto issues.

Earlier this year, China outlawed cryptocurrency mining, trading, and investment. “If we outlaw cryptocurrency, we must also block the internet,” Siluanov explained. “We do not employ the procedures that China does.”

Simultaneously, Fitch Ratings stated that a ban on cryptocurrency may limit Russia’s financial system’s exposure to risk. However, the restriction may have long-term consequences by stifling innovation and technological advancement.