Russia Finance Ministry Proposes to Regulate Crypto Instead of Banning It


The Ministry of Finance suggested a regulatory framework to allow cryptocurrency transactions to be conducted through Russia’s banks system. It also included infrastructure to monitor and identify trader activity.

Crypto Regulations instead of Ban

RBU, a local media outlet, reported that the Ministry of Finance proposes a mechanism to allow cryptocurrency transactions in Russia to be handled through traditional financial institutions. The proposal includes strong customer identification protocols that would be used to identify customers for regulated virtual currency transactions.
There was speculation that Russia’s central banking wanted to ban the cryptocurrency industry from the country. The apex bank also called the sector a pyramid scheme and said that digital assets were threatening financial stability as well as sovereign monetary policies.
The Bank of Russia also addressed cryptocurrency mining, saying that this energy-intensive activity was against Russia’s green agenda. It is interesting to note that crypto mining thrives in Russia, which is the third-largest country for mining after the United States and Kazakhstan.
Ivan Chebeskov is the Director of the Department of Financial Policy in the Ministry of Finance and opposed the blanket ban on crypto. The official stated that regulation of the industry would be a better option.
Chebeskov stated that the Ministry of Finance had already created a regulatory framework, and it was being submitted to the government. Further, the official stated that the world was becoming more “virtualized” and it was crucial for the Russian government create an environment that allows for technology such as crypto development.
According to the official:
“Here it’s necessary to provide an opportunity for the development of these technologies (mining etc.). The Ministry of Finance actively participates in the development of legislative measures to regulate this market.

Putin gives crypto mining his approval

The central bank is still firmly against crypto but Russian President Vladimir Putin has expressed some support for cryptocurrencies in recent days, particularly the mining sector. According to CryptoPotato’s previous reports, Putin has stated that Russia will gain “competitive advantage” by allowing crypto mining.
Bloomberg reports that some government sources claim that Putin wants to regulate crypto mining, which will make use of Russia’s excess electricity supply. Russia is third in the world for cryptocurrency mining, behind the United States of America and Kazakhstan.
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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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