According to people familiar with the talks, top government officials failed to reach an agreement on how to regulate cryptocurrencies at a meeting on Tuesday, despite President Vladimir Putin’s request for them to find a compromise.
The Bank of Russia’s Elvira Nabiullina, Finance Minister Anton Siluanov, and Deputy Prime Minister Dmitry Grigorenko did not reach an agreement and instead decided to formalise their disagreements, according to the people, who asked not to be identified because the meeting was not open to the public.
The central bank’s press service and a Finance Ministry spokesman both declined to comment on the meeting. Grigorenko’s spokesman did not immediately respond to a request for comment.
Despite Putin’s call for a quick solution in January, little progress has been made in reaching an agreement on how Russia should regulate cryptocurrency. According to Kommersant, the Finance Ministry and central bank were supposed to prepare a draught law on the subject by February 18.
According to a letter from Nabiullina to Siluanov , the central bank believes there are too many risks associated with cryptocurrency and has proposed a ban. The contents of the letter were confirmed by the central bank’s press service.
According to the regulator, cryptocurrency is similar to a pyramid scheme and poses a risk to people’s financial well-being, the financial system, and the economy. To bring digital currencies out of the shadows and attract investment, the government wants to regulate them.
Russia’s current laws recognize crypto assets but do not allow them to be used as payment, leaving them largely unregulated. According to a recent government paper, Russians own approximately 2 trillion rubles ($26 billion) in cryptocurrency.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.