{"id":32425,"date":"2023-07-06T21:45:05","date_gmt":"2023-07-07T01:45:05","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/russian-finance-ministry-proposes-crypto-ban\/"},"modified":"2023-07-06T21:45:07","modified_gmt":"2023-07-07T01:45:07","slug":"russian-finance-ministry-proposes-crypto-ban","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=32425","title":{"rendered":"Russian Finance Ministry Proposes \u2018Crypto Ban\u2019"},"content":{"rendered":"
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The Russian finance ministry has reportedly proposed banning the circulation of crypto in the nation, but wants to make exceptions for stablecoin issuers and crypto miners.<\/p>\n

Per Frank Media, sources \u201cfamiliar with the matter\u201d told the news agency Interfax that the proposals could be bundled with the much-delayed crypto mining legalization bill, and have already been drafted.<\/p>\n

The ministry wants to press ahead with legislation that would officially allow industrial miners to operate in the country.<\/p>\n

Russia\u2019s crypto mining sector is already highly advanced, due mainly to the nation\u2019s rich energy resources and cold winter climate.<\/p>\n

But mining is not currently recognized as a legal form of business, nor can it be taxed accordingly.<\/p>\n

The ministry wants to rectify this.<\/p>\n

And it hopes the mining bill will be passed by the State Duma soon.<\/p>\n

But it has been hampered by the crypto-skeptic Central Bank.<\/p>\n

The bank wants to blanket-ban \u201cprivate\u201d cryptoassets like Bitcoin (BTC).<\/p>\n

In recent months, the bank has suggested it is ready to compromise on some aspects of its stance.<\/p>\n

And it has reluctantly given the go-ahead to trade firms who use crypto to evade sanctions.<\/p>\n

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Is Crypto Legal in Russia?<\/h2>\n

Russian lawmakers have thus far only approved one piece of crypto-specific legislation.<\/p>\n

This 2020 law bans the use of crypto as a form of payment and forbids firms from advertising crypto-releated services.<\/p>\n

All other bills, proposals, and the like have failed to satisfy both the pro-industry ministry and the ever-skeptical Central Bank.<\/p>\n

But perhaps in a bid to end the years-long impasse, the ministry has now reportedly suggested \u201cprohibiting the organization of the circulation of [cryptoassets], with the exception of [crypto] mining.\u201d<\/p>\n

The proposals would effectively ban crypto exchanges and crypto ATMs from Russia.<\/p>\n

But, perhaps unsurprisingly, the proposals are already facing challenges in Moscow.<\/p>\n

Two \u201claw enforcement agencies\u201d have said they \u201coppose the amendments.\u201d<\/p>\n

They agencies reportedly believe that introducing \u201ca ban on organizing the circulation of digital currency as a whole\u201d requires \u201cadditional discussion.\u201d<\/p>\n

The Federal Security Service (FSB) reportedly said that the definition of \u201cthe organization of the circulation of [cryptoassets]\u201d needed a clearer definition.<\/p>\n

And the Investigative Committee, the nation\u2019s main federal investigating authority, also said the \u201cwording proposed by the Ministry of Finance\u201d could \u201ccause confusion.\u201d<\/p>\n

Police and other officials might also be concerned that it would be hard to enforce such as ban when, per government figures, some 12% of Russians own cryptoassets.<\/p>\n

If these objections derail the ministry\u2019s crypto plans, it would not be not the first time law enforcement agencies have seemingly thrown up an insurmountable obstacle.<\/p>\n

The Central Bank has previously stated that miners\u2019 tokens should only be sold on foreign crypto exchanges.<\/p>\n

But law enforcement agencies objected, warning that this could lead to a rise in money laundering.<\/p>\n<\/p><\/div>\n