The Russian Prime Minister and the Russian Economy Ministry support the legalisation of cryptocurrencies.
The Russian Ministry of Economic Development and Prime Minister Mikhail Mishustin have welcomed measures to regulate cryptocurrencies and integrate them into the Russian economy. The support comes as Russia faces increasing sanctions as a result of its involvement in the Ukraine conflict, which are limiting its access to global financial markets.
The Russian Finance Ministry's push to legalise the crypto space is gaining traction.
Despite the central bank's continued hostility, Russian authorities are working toward the implementation of a comprehensive legal framework for cryptocurrencies. Other government agencies and officials have backed the Finance Ministry's position, which favours legalisation, especially given that Russia is under unprecedented sanctions, including financial limitations.
Minfin's regulatory approach was approved by the federal government in early February. The ministry then proposed a new draught law titled "On Digital Currency," with the goal of closing the regulatory holes left following the implementation of the "On Digital Financial Assets" law in January 2021.
Russian Prime Minister Mikhail Mishustin was cited on Friday as saying that the administration has thoroughly examined the suggestion about the adoption of a special framework for cryptocurrency operations. He elaborated during a discussion with members of the Liberal Democratic Party of Russia (LDPR) in the State Duma:
Of course, the mechanism for the circulation of digital currencies will need to be integrated into the country's financial system.
At the same time, Mishustin stressed that the relevant concerns can only be resolved with the Bank of Russia's cooperation (CBR). According to him, the central bank must analyse the risks posed by cryptocurrencies. The central bank proposed a blanket crypto ban in January, citing hazards to the country's financial stability and citizens.
While the CBR seeks to ban a wide variety of crypto-related activities, including the issuing, trading, and mining of digital currency, Russian Prime Minister Vladimir Putin has stated that his cabinet is prepared to regulate crypto mining. "It was described in great detail in the concept." According to a government press release, Mikhail Mishustin concluded, "It has been approved by us."
Minfin's plan was also backed by the Russian Ministry of Economic Development earlier this week, which wants to help finalise the legislation. The department stated that it is still waiting for comments from the Finance Ministry on bitcoin mining, cryptocurrency payments, and the criteria for operators of digital asset exchanges.
