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Russia’s finance ministry calls for crypto regulation, not ban

The Russian finance ministry called for the regulation of cryptocurrencies on Tuesday, opposing the central bank’s proposal last week to ban crypto mining and usage.

Fast facts
  • Ivan Chebeskov, director of the finance ministry’s financial policy department, told Russian outlet RBC that a ban on crypto transactions and mining could hamper the country’s growth in the industry.
  • The Bank of Russia issued a report last week calling cryptocurrency a pyramid scheme and recommending a comprehensive ban on crypto and related activities.
  • Russia accounts for 11% of the global Bitcoin hashrate, behind the U.S. (35%) and Kazakhstan (18%), according to Cambridge University index, and a ban on mining in the country could have a disruptive impact on the global hashrate.
  • Russian President Vladimir Putin urged the central bank and the finance ministry for “some kind of unanimous opinion” between the two parties in a video conference with government ministers on Wednesday.
  • Russia had already banned cryptocurrency for payments in 2020.