Please enter CoinGecko Free Api Key to get this plugin works.

No Crypto Loans and Fewer Trading Options: Russian Finance Ministry

The Russian government will not allow cryptocurrency lending, according to the finance ministry, who also clarified its proposals for crypto market regulation. The Treasury Department also revealed that under the new rules, not all cryptocurrencies will be available to Russian investors.

 

The Russian government intends to restrict investor access to cryptocurrency assets.
The Ministry of Finance has stated in an explanatory note to its regulatory proposal that authorities in Moscow do not intend to allow cryptocurrency loans or the use of cryptocurrency as collateral. The federal government recently approved the department’s concept as the foundation of Russia’s legal framework for the crypto sector.

 

The Treasury Department also states that market participants will be required to inform citizens about the increased risks associated with digital currencies. According to the document, Russian regulators also intend to impose restrictions and strict control over the advertising of crypto-related products and services.

 

To protect investors, the department suggests that officials consider limiting the number of cryptocurrencies available for trading in Russia. Foreign crypto exchanges rarely verify crypto projects, allowing the coins of fraudulent schemes and financial pyramids to be listed, according to the ministry.
Regulated circulation through licensed exchanges, on the other hand, will limit the list of tradable assets and provide Russian citizens with access only to the most mature and established cryptocurrencies.
Furthermore, the finance ministry wants non-residents to be able to buy cryptocurrency on domestic and foreign-registered digital asset exchanges with a Russian Federation office. These investors, however, will be required to withdraw funds from these platforms via authorized local banks.

 

Russian authorities are currently drafting comprehensive regulations for the country’s crypto space. Other government institutions have rejected the Bank of Russia’s proposal to impose a blanket ban on crypto operations, with the majority siding with the finance ministry and favoring strict regulation over prohibition.

 

The Treasury Department and the Central Bank have been tasked with drafting legislation to implement the government-approved regulatory plan by February 18. The new legislation is expected to be passed by the State Duma during the spring session of the lower house of parliament.

 

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

Leave a Comment

Your email address will not be published. Required fields are marked *

Facebook
Twitter
Telegram

Recent Posts

Follow Us