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Minister says Legalizing Crypto in Russia Is On The Horizon

Saturday May 21, 2022

LendenX

Denis Manturov, Minister of Industry and Trade of the Russian Federation, recently expressed his view that bitcoin as well as other cryptocurrencies becoming legal in Russia is merely an issue of time according to an article from TASS, a Russian state-run information agency.

An educational program was held in the name of New Horizon, when asked whether it was the case that Russia would legalize bitcoin or another cryptocurrency Manturov remarked – “The question is when it will happen, how it will happen, and how it will be regulated. Now both the Central Bank and the government are actively engaged in this.”

At present, Russian authorities are discussing the future of cryptocurrency and mining. In the past, the Bank of Russia moved ahead with the complete prohibition of cryptocurrency, citing the threat to the financial system as it is.

Russian legislators are working to develop rules that will govern the mining and trading of cryptocurrency. Despite the central bank’s persistent opposition to the legalization of cryptocurrency in Russia, the financial regulators eventually came around to the value of cryptocurrency even though it was not entirely voluntary.

The Russian Ministry of Finance has favored regulation over prohibition and finally achieved its goal, even though the details are being discussed. For instance, Russian state security services would like to participate in the specifics of the regulation. The taxation of cryptocurrency is another problem that has still to be solved.

Russia is planning to create its digital rouble however, the government has only recently gotten on board with the use of cryptocurrency after arguing for decades about their potential use to aid in money laundering or for financing terrorist activities.

But, Central Bank Governor Elvira Nabiullina has stated that the bank is not able to accept cryptocurrency investments which are approximately $5 billion in transactions annually by Russians, and has suggested prohibiting mining and trading.

Citing the risks to financial stability because of the growing volume of transactions using crypto, central bank officials stated that they did not think that cryptocurrency could be utilized in the Russian finance market. Manturov declared that the rules regarding the use of cryptocurrency should initially be set through the central bank followed by the federal government.

The Ministry of Finance, however, has maintained that cryptocurrencies must be well-regulated and legal. President Vladimir Putin also pleaded with regulators to reach an agreement because of the advantages of Russia’s natural resources.

This February, the Russian government endorsed the idea of regulating bitcoin as well as other cryptocurrencies, based on a plan drafted by the Ministry of Finance. The same month, the Ministry of Finance also submitted a bill. This bill was submitted by the Ministry of Finance and reportedly expects legislation to regulate bitcoin and other cryptocurrencies, which will be introduced in the coming year. The Ministry of Finance is also working on tax collection on cryptocurrency.

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