Elvira Nabiullina, governor of the Bank of Russia, previously stated that banning Bitcoin in Russia was “quite doable.”
Cryptocurrencies such as Bitcoin (BTC) cannot be banned, according to Russia’s finance minister Anton Siluanov, as the Bank of Russia continues to urge the government to do so.
A ban on cryptocurrency in Russia is “the same as banning the internet, which is impossible,” Siluanov declared at the ministry’s briefing with the central bank on Wednesday, according to Forbes Russia.
According to reports, the finance minister believes that regulating the cryptocurrency industry as soon as possible is preferable to banning it because it will allow the government to finally monitor the market and grow the country’s budget through crypto mining taxes.
“What’s wrong with that? I don’t understand why it should be prohibited,” Siluanov said at the briefing, adding that taxing the market is a simple solution. According to the minister, the government should collect taxes on realized gains on deposits and withdrawals of fiat assets.
“The Central Bank wants to outright ban crypto assets, claiming that they pose risks, primarily to citizens, and that they can “infect” financial institutions and banks, as well as create an opaque settlement market,” Siluanov said.
He went on to say that the finance ministry recognizes these concerns and, as a result, believes it is necessary to limit cryptocurrency exposure by non-professional investors as part of its crypto regulation concept, which was released in early February. As a result, the maximum amount for inexperienced investors can be set between 50,000 Russian rubles ($660) and 100,000 rubles ($1,300), according to the minister. Siluanov’s deputy, Alexei Moiseev, had previously suggested capping such purchases at $660.
Officials did not say whether the potential limit would apply to monthly investments or any other time period. The ministry’s press office did not immediately respond to any media sources.
Meanwhile, the Bank of Russia opposes allowing non-professional investors to purchase cryptocurrencies such as Bitcoin, citing common risks such as fraud and money laundering. When it comes to mining, the authority has also been quite hostile to crypto, warning against fraudulent mining schemes of “nonexistent cryptocurrencies.”
After years of deliberation, the Bank of Russia and the Russian government are expected to reach an agreement on crypto regulation in the country by this Friday.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.