Prime Minister Mikhail Mishustin and the Russian Ministry of Economic Development have backed efforts to regulate cryptocurrencies and integrate them into the country’s economy. The support comes amid mounting sanctions over the war in Ukraine which restrict Russia’s access to global finances.
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.
In early February, the federal government announced its approval of Minfin’s regulatory concept. Then the ministry submitted a new draft law “On Digital Currency” aiming to fill the regulatory gaps remaining after the enforcement of the law “On Digital Financial Assets” 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 mechanism for the circulation 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.
While the CBR wants to prohibit a wide range of crypto-related activities, including issuing, trading and mining of digital currencies, the Russian prime minister revealed his cabinet is ready to regulate operations like crypto mining. “It was detailed in the concept. It has been approved by us,” Mikhail Mishustin concluded, according to a release by 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.
