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Russian Finance Minister Supporting Crypto Regulations Rather Than Complete Ban

On Wednesday, February 16, 2022, the Russian financial ministry expressed a soft corner for the development of cryptocurrency. The ministry asked for Government help to regulate crypto investing, trading, and mining in Russia rather than putting a complete ban on it as advised by the central bank of Russia.  

The Russian finance minister,  Anton Siluanov, asked the Government not to restrict the circulation and development of cryptocurrencies; he stressed it should be legalized and taxed.

As per Siluanov, authorities realized the importance of the fast-growing digital cryptocurrencies. Therefore, the central bank and finance ministry have been on the discussion page for a year and a half.

Anton Siluanov declared finance ministry remarks to legalize and tax the digital cryptocurrency investment rather than banning it. He advised banks and exchanges to search for potential investors and brokers to develop renowned fast-growing digital assets. The Finance Ministry is preparing procedural recommendations draft pointing methods to regulate crypto.    

Siluanov said that there had been long debates between the finance ministry and the central bank to regulate digital cryptocurrency and believe Government may support them to solve the puzzle and go forward to a solution. “We will go to our superiors with these disagreements to try to solve the discords,” Siluanov reported.  

A week ago, the matter got highlighted when Bloomberg reported that Siluanov approached prime minister Mikhail Mushustin to legalize cryptocurrency. He thinks the legalization of crypto will abolish crypto market uncertainty resulting in economic stability and development. Moreover, according to him, legalization will also permit the Government to establish a framework to keep a check on crypto investors. 

Bank of Russia Disagree To Russian Finance Ministery

The central bank of Russia proposed a complete ban on mining, trading, and investing in digital cryptocurrencies during the last month, urging that it could cause financial uncertainty. But finance ministry completely opposed the central bank stance, and ultimately, Russian president Vladimir Putin asked authorities to find a solution through a census. 

Related Reading | Bank of Russia Crypto ban stance as it begin to test Country’s CBDC.

The central bank of Russia requested the Government to impose crypto regulations. They may get lessons from the experience of the other countries, particularly China, how it dealt with crypto matters. China set a complete ban on mining, trading, and investing in cryptocurrencies during the last year. “ If we ban cryptocurrencies, then we need to ban on the internet, “ Siluanov said. “We don’t use methods that China uses.”

At the same time, Fitch Ratings commented that a ban on cryptocurrencies might restrict Russia’s financial system’s exposure to risk. However, the ban can also cause disadvantages in freezing innovation and technological growth in the long run.