The stance of Russia on crypto has been in the news for quite some time. Simmilar to Regulators from all over the world, the country is in a state of confusion. The Central Bank of Russia wants to ban cryptocurrencies. However, the Finance Ministry is all in favor of legalizing crypto. The Government of Russia is leaning on the side of the Ministry.
Finance Ministry Suggests Making Crypto Legal in Russia
The Finance Ministry is taking a pro-cryptocurrency stance now. Moreover, the Ministry wants banks to start trading cryptocurrencies. According to a report by the Russian newspaper Kommersant, the Ministry wants to legalize crypto assets. The government is also backing the Finance Ministry’s suggestions.
Also, the Deputy Prime Minister of Russia has signed a new document. Moreover, the paper talks about Bitcoin regulation and identifying crypto clients in Russia. The Finance Minister, Anton Siluanov, suggests that banks start selling crypto assets.
Also Read: New Tax Rate On Cryptocurrency: A foul play by India
Central Bank of Russia And Finance Ministry’s Opposing Views
The Finance Ministry is strongly opposing the Central Bank’s views on cryptocurrency. Accordingly, the Ministry wants banks to treat cryptocurrency as investment assets and start trading in them.
In a letter to Prime Minister Mikhail Mishustin, the Finance Minister advises legalizing crypto as financial assets. Last month, the Central Bank had released a 37-page document warning about the digital currency. The bank says that cryptocurrency could cause financial instability. Moreover, the Central Bank adds that bitcoin mining causes environmental effects.
The Finance Ministry says that legalizing these assets will bring them into the ‘grey zone.’ Also, new regulations like providing licenses to banks to trade in digital assets should be introduced. Furthermore, the Ministry also proposes that participants in the market should obtain licenses.
Other suggestions included taxing cryptocurrency transactions and introducing anti-money laundering guidelines. As noted, the Central Bank and the Finance Ministry agree that cryptocurrency should not be made legal tender. However, they disagree on whether the asset should be banned.
With the finance ministry suggesting cryptocurrency regulation, analysts are predicting a bullish breakout in the cryptocurrency market. There could be a boost in demand for Bitcoin following this news in Russia. Moreover, the Indian government, too, is taxing digital assets.
Regulation and taxation of digital assets could indicate an acceptance of these digital currencies. This could boost their demand in the market.
