Russian authorities are not going to allow cryptocurrency lending, the finance ministry has announced, clarifying its proposals for crypto market regulation. The treasury department also revealed that not all cryptocurrencies will be available to Russian investors under the new rules.
Russian Government To Restrict Investors’ Access To Crypto Assets
Moscow authorities do not plan to allow cryptocurrency lending or its use as collateral, the Finance Ministry pointed out in an explanatory note to its regulatory proposal. The concept of the department was recently approved by the federal government to form the basis of the Russian legal framework for the crypto sector.
The treasury adds that market participants will be obliged to duly inform citizens about the heightened risks associated with digital currencies. Russian regulators also intend to impose restrictions and introduce strict control over advertising of crypto-related products and services, Tass news agency reported, quoting the document.
The department suggests that officials consider limiting the number of cryptocurrencies available for trading in Russia to protect investors. Foreign crypto exchanges rarely verify crypto projects thus allowing to list the coins of fraudulent schemes and financial pyramids, explains the ministry and states:
In contrast, regulated circulation through licensed exchanges will limit the list of tradable assets and offer Russian citizens access only to the most mature and established cryptocurrencies.
In addition, the Ministry of Finance wants to allow non-residents to buy cryptocurrency on domestic and foreign digital asset exchanges that have an office in the Russian Federation. However, these investors will be required to withdraw all funds from these platforms through licensed local banks.
Russian authorities are now working to adopt comprehensive regulations for the country’s crypto space. A proposal by Bank of Russia to adopt a blanket ban on crypto operations was rejected by other government institutions, most of which have sided with the finance ministry, favoring strict regulation over prohibition.
The Treasury Department and the central bank have been instructed to prepare a bill implementing the government-approved regulatory plan by Feb. 18. State Duma lawmakers are expected to pass the new legislation during the spring session of the lower house of parliament.
