Russia’s Prime Minister and the Economy Ministry have both come to support cryptocurrencies legalization. They believe that their country could benefit from crypto-regulation, having experienced a huge surge of interest in digital currencies over recent years as well as seeing how they are used elsewhere around the world. The Russian government is also looking at legalizing initial coin offerings (ICOs) which compare favorably with traditional fundraising methods due to increased transparency and lower risks for investors compared with other crowdfunding models such as Kickstarter or Indiegogo campaigns.
Russian Prime Minister and Economy Ministry 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.
Russia’s Push For Crypto Legalization Gains Momentum
The Russian Finance Ministry’s push for legalizing crypto space gains momentumlegal framework for cryptocurrencies, despite the central bank’s persisting opposition.
The Finance Ministry’s approach, which favors legalization, has been winning support from other government institutions and officials, even more so now as Russia faces unprecedented sanctions, including financial restrictions.
Minfin’s regulatory concept was approved by the federal government in early February.
The ministry also submitted a draft law titled “On Digital Currency” to fill any regulatory gaps left after January 2021, when the law “On Digital Financial Assets” will be enforced.
As part of the efforts to adopt a special regime for cryptocurrency operations, Russian Prime Minister Mikhail Mishustin was quoted on Friday as saying that the government had thoroughly reviewed the proposal.
He elaborated in a meeting with lawmakers from the Liberal Democratic Party of Russia (LDPR) at the State Duma:
Digital currencies must be integrated into the country’s financial system, of course.
Meanwhile, Mishustin emphasized that only the Bank of Russia (CBR) can help resolve the pertinent issues. According to him, the central bank must evaluate the risks posed by cryptocurrencies. A blanket crypto ban was proposed by the monetary authority in January, citing financial stability concerns and citizens’ concerns.
The Russian prime minister revealed his cabinet is prepared to regulate operations such as crypto mining, even as the CBR wants to prohibit a wide range of crypto-related activities.
The concept was very detailed. Our approval has been given,” Mikhail Mishustin concluded, according to a press release from the government press service.
Minfin’s bill was backed earlier this week by the Russian Ministry of Economic Development, which wants to assist in the drafting of the legislation. A department official said it is still waiting for feedback from the Finance Ministry about bitcoin mining, cryptocurrency payments, and the requirements for operators of digital asset exchanges.
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