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As the Russian Central Bank prepares its own bills, the Russian Finance Ministry will draught two crypto laws

The Russian Ministry of Finance has proposed two pieces of legislation to regulate cryptocurrencies. The draughts will be presented for public comment, which is expected to last until March 18. According to media reports, the Bank of Russia has been working on alternative bills.

The Russian Ministry of Finance will hold public consultations on new cryptocurrency legislation.

Russia’s finance ministry has begun work on two new bills that will comprehensively regulate cryptocurrencies and related activities in the country. The Treasury Department proposes a new law titled “On Digital Currency” as well as a bill amending other legislative acts in connection with it.

The texts have yet to be published, according to the Russian federal portal for draught regulatory acts. Consultations will then begin and will last until March 18, according to the business news outlet RBC. The announcement comes after the Ministry of Finance and the Central Bank of Russia were tasked earlier this month with developing new crypto legislation by February 18.

The two institutions have been at odds over the future of cryptocurrencies in Russia, with the CBR proposing a ban on a wide range of coin operations such as issuing, trading, and mining, while Minfin has lobbied for strict regulation. Based on the Treasury’s concept, the federal government approved a plan to regulate the crypto space.

Meanwhile, media reports indicate that the Bank of Russia has prepared its own legislative proposals aimed at preventing the issuance, circulation, and use of “private digital currency” in the Russian Federation. According to RIA Novosti, the regulator will levy fines of up to 1 million rubles ($13,000) for violations of these restrictions.

According to Tass, which claims to have obtained the documents, a source in the financial industry told the news agency that the central bank’s draught laws have been provided to the finance ministry. The monetary authority notes in an explanatory note that the penalties should be imposed on entities and individuals involved in the prohibited operations.

The regulator also intends to prohibit the dissemination of information about this type of currency and any of the activities listed. The CBR also proposes that banks, other financial institutions, and entities operating within Russia’s national payment system be barred from holding cryptocurrencies under threat of administrative action, and that crypto-related transfers on behalf of individuals be rejected.

The Bank of Russia’s proposals reflect its hardline stance on cryptocurrencies, which has isolated it among Russian government institutions, the majority of which prefer regulation over prohibition. They follow the launch of its own central bank digital currency (CBDC) pilot phase. The platform’s prototype was completed in December, and the CBR announced this week that it had successfully completed the first transactions between digital ruble wallets with the assistance of commercial banks taking part in the trials.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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