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Russian regulators agree that Bitcoin can’t be used to pay for things

Authorities in Russia haven’t yet agreed on the future of cryptocurrencies, but they all want to stop people from using bitcoin to pay for things like food and medicine. People in the business world in Russia say that more activities with digital assets will be legal and regulated.

Russia’s Central Bank and Finance Ministry have agreed to ban crypto payments.

How should Russia’s crypto space be regulated? This is a question that has been brought up by Russia’s Central Bank, Ministry of Finance, and government. It won’t be possible to pay with digital currencies that aren’t controlled by anyone else, the head of the Russian Union of Industrialists and Entrepreneurs (RSPP) Alexander Shokhin said after a meeting about digitalization.

People who use cryptos for payments, exchange, and mining should be banned, the Bank of Russia said last month. The hardline policy proposal didn’t go over well with other institutions, like the finance ministry, which came up with its own idea of how to treat cryptocurrencies. The federal government agreed with the treasury’s point of view and decided to go with regulation instead of prohibition.

People already know that both sides of this debate have come closer together. If we’re talking about prohibitions, we’re talking about a ban on using cryptocurrency as a form of payment, not a ban on everything else, says Shokhin. Coins can be bought, sold, and exchanged under government-approved rules, the report says.

Russia’s regulatory bodies are still trying to figure out how to deal with cryptocurrency, says Vladimir Potanin, a co-chairman of RSPP’s Coordinating Council and the president of Nornickel. He says that all of them support a ban on cryptocurrency being used as legal tender.

People in the business world have agreed with the government, the central bank, and lawmakers that cryptocurrencies are more complicated and difficult to control than digital financial assets.

In January of last year, a law in Russia called “On Digital Financial Assets” came into effect. It regulated some parts of the crypto economy, like how tokens are made and sold. It also left many unanswered questions. People at the State Duma, the lower house of parliament, have started writing new laws to fill in the gaps in what they already have.

By Feb. 18, Russia is expected to pass a new law that sets out all of the rules for how cryptocurrencies can be traded in the country. Anatoly Aksakov, the head of the Financial Market Committee, said this week that he already has a draught on his desk. This plan will be put into action at this year’s spring meeting of the Duma.

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

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