Earlier this month, Russian Finance Minister Anton Siluanov stated that legalising cryptocurrency will help remove grey market crypto trade while also allowing the government to regulate the business. As a result, the government is developing a strategy for regulating the market and allowing domestic trade through state-controlled financial institutions.
Alexey Moiseev remarked in a press conference on February 14:
“We need to provide clear and transparent laws for citizens and corporations to participate in the financial instruments of the crypto market. A clear regulatory framework precludes the emergence of a rival financial system.”
The Russian government’s plan to legalise cryptocurrency has both a political and a geopolitical component. A legitimate cryptocurrency market would provide a mechanism for Russia to skirt global sanctions. Furthermore, as a result of China’s crypto mining prohibition, Russia has risen to become the world’s third-largest crypto mining centre. According to government officials, transparent laws will attract a $3.5 billion investment in 2022.
Russia’s central bank has said that the usage of cryptocurrency resembles a pyramid scheme. The Bank of Russia considers that cryptocurrency might be used for unlawful financial operations and hence advises against its usage and mining.
Elvira Nabiullina, Governor of the Bank of Russia, stated at a news conference last Friday:
“The options provided by the government do not yet allow for the neutralisation of the hazards that we observe, while simultaneously creating new threats. We see significant dangers here, and I hope that common sense prevails.”
Just as the Bank of Russia is concerned about the legality of cryptocurrency, the Reserve Bank of India (RBI) has expressed a similar worry. The country’s Finance Ministry is still debating over the legality of the digital asset class.