Russia’s Ministry of Finance and the Bank of Russia at Odds on the Cryptocurrencies Implementation

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The Russian Ministry of Finance proposed a bill that regulates the use of cryptocurrencies other than prohibiting their use. The Ministry recently launched the proposed bill and sent it to its parliament for deliberation and amendments.

During the launch, the Ministry stated that the creation and development of the digital assets in the country, combined with the relevant regulations, provides a legal market for its users. The Ministry further emphasized that the proposed bill does not validate any form of digital currencies with the legal tender due to the consumers using the currency as a form of investment.

The proposed bill gives rules for crypto investors and operators 

The proposed bill introduces a license for all or any company, investment firm, or platform enhancing the circulation of cryptocurrencies and other digital assets. The Ministry also introduces new regulations that the cryptocurrency operators and investors ought to follow, including data privacy. In addition, the proposed bill allows for the trading of authorized cryptocurrencies through regulated bank accounts suggested by both the platforms and banks while instituting consumer procedures.

Digital asset platforms and operators are also required to caution the consumers on the dangers and potential losses that accompany the trading of cryptocurrencies. Therefore, the Finance Ministry shall allow crypto operators and platforms that fulfill the law’s requirement to a maximum 600,000 rubles (equivalent to $7900) trade limit annually. However, the operators that fail to achieve the required mandates will acquire a 50,000 rubbles (Equivalent to $650) trade limit a year.

The Ministry of Finance ignored the ban from the Bank of Russia 

The Ministry launched the proposed bill following the Bank of Russia’s announcement of its framework on the prohibition of cryptocurrencies. However, the Ministry ignored the bank’s framework after the latter sent it for a review. The bank’s stance on crypto assets is that no financial institution should be authorized to transact or trade in any form of cryptocurrency. The bank also intends to prohibit any commercial ad supporting or encouraging cryptocurrencies. The two bodies were to discuss the matter. However, all efforts failed as they each launched contradicting crypto positions.

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