Crypto regulation is preferred by Russia's finance minister over a blanket ban

The Russian finance ministry opposes the central bank's proposal to restrict cryptocurrency usage, trading, and mining, according to the Minister of Finance.


The Russian finance ministry opposes the central bank's proposal to restrict cryptocurrency usage, trading, and mining, according to the Minister of Finance.
Russia Minister of Finance | Image: The Moscow Times

Rather than prohibiting cryptocurrencies, Finance Minister Anton Siluanov believes they should be legalized and taxed, according to his ministry.


He emphasized that banks and exchanges should identify cryptocurrency investors and act as brokers for them.


By the end of the week, Russia's finance ministry is set to submit a proposal on how to regulate cryptocurrency in the country, which witnessed $5 billion in annual transactions.


The finance ministry and central bank, according to Siluanov, have been debating cryptocurrency regulation for a year and a half, and he expects the government will assist in resolving the crypto regulation challenge and finding a solution. "With these disagreements, we will go to our superiors and try to resolve them," Siluanov added.


Bloomberg reported earlier this week that Siluanov had written a letter to Prime Minister Mikhail Mishustin urging him to legalize cryptocurrency.


He believes that reducing the confusion surrounding cryptocurrencies will benefit the economy and allow the government to better monitor the asset class.


Crypto discontent at the Bank of Russia


The Bank of Russia had previously proposed limiting crypto trade and mining because to concerns about financial instability. The finance ministry, on the other hand, quickly disagreed, prompting President Vladimir Putin to urge on authorities to reach an agreement.


The Bank of Russia has previously stated that crypto legislation needs to be adjusted based on the experiences of other nations, such as China. China initiated a full-fledged assault on cryptocurrencies last year, which included a blanket ban on all cryptocurrency transactions and energy-intensive mining.


"If we outlaw cryptocurrency, we must also block the internet," stated Siluanov. "We don't employ the same procedures as China."