The central bank's ideas on cryptos would be considered by Russia's finance ministry

The central bank's ideas on cryptocurrencies would be considered by Russia's finance ministry, provided they do not conflict with the country's own policy.


The central bank's ideas on cryptocurrencies would be considered by Russia's finance ministry, provided they do not conflict with the country's own policy.
Russian Finance Ministry

If the disputing parties can reach an agreement, it will open the path for legislation managing digital assets. The finance ministry submitted draft laws last week to legitimate the digital currency sector.


One of the proposals' recommendations is to implement financial literacy examinations, which would ultimately determine how much money people are permitted to invest.


Those who pass the examination, for example, might spend up to 600,000 roubles ($7,853) in digital currencies every year, while those who fail would be limited to 50,000 roubles per year.


Another suggestion would mandate that every transaction involving the purchase or sale of cryptocurrency be mediated by a Russian bank, requiring client identification.


This may reduce some people's interest in cryptocurrencies, as it goes against basic concepts like financial independence and privacy. Another suggestion calls for overseas bitcoin exchanges to obtain a Russian license.


A roadmap for cryptocurrency


The Bank of Russia reaffirmed its harsh position against cryptocurrencies, reportedly displeased with the suggestions provided by the finance ministry last week.


Concerned about the threat cryptocurrencies represent to financial stability, the central bank proposed prohibiting cryptocurrency trading and mining late last year.


The finance ministry, on the other hand, has come out in favor of regulation over prohibition, allowing crypto to be used as an investment tool but not as a form of payment.


While the monetary authority has raised concerns about inefficient energy use and mining's environmental impact, the finance ministry believes it can be efficiently permitted and taxed.


The disparity in official views prompted Russian President Vladimir Putin to seek that the Russian authorities reach an agreement on cryptocurrency policy.


Following the agreement on a roadmap, Binance joining the Association of Russian Banks to help establish a regulatory framework might pave the way for crypto legalization in Russia.