According to the country’s finance minister, in his first remarks on his department’s current differences with the Russian monetary authority, it is difficult to prohibit cryptocurrencies in Russia. The two institutions don’t seem to be able to agree on how to regulate crypto, but the Treasury wants to propose draft legislation even though they don’t agree.
A meeting this week between Central Bank of Russia (CBR) Governor Elvira Nabiullina, Russian Finance Minister Anton Siluanov, and Deputy Prime Minister Dmitry Grigorenko to come up with a common approach to cryptocurrency regulation didn’t work out.
Despite President Putin’s call, according to a Bloomberg report quoting knowledgeable sources, the participants have not achieved a consensus on Russia’s future strategy regarding the crypto space, but have only formalised their disagreements. So far, the only point of agreement has been a mutual opposition to the use of bitcoin and other cryptocurrencies as a form of payment.
The Bank of Russia proposed a blanket ban on cryptocurrency activities like issuance, exchange, and mining in January, citing concerns about financial stability and investors. However, the federal government has agreed with the Treasury Department that most crypto operations should be licenced and controlled under strict laws, rather than simply prohibited, according to a statement released on Feb. 8.
Because cryptocurrencies are very volatile, the ministry believes it is important to limit non-qualified investors’ access to these assets, proposing a maximum of 50,000 rubles (about $650). Siluanov says that Minfin wants to make the company more appealing to other investors, and he thinks that all of the concerns raised by the CBR are “controllable.”