Wednesday, September 28, 2022
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Russian Parliament working group to intervene in mechanisms of crypto transactions

A State Duma (lower chamber of Parliament) working group has expressed support for regulating rather than prohibiting digital assets, amid ongoing discussions between the Central Bank of Russia (CBR) and the country’s Finance Ministry on the future of crypto. The working group recommended “clear regulation of the digital assets business” as the most effective way to reduce the risks of cryptocurrency adoption in the country.

According to local media, some 50 specialists attended a panel discussion organised by the Duma’s working committee “on the questions of cryptocurrency regulation.” The attendees came to the conclusion that “successful and transparent” regulation of the digital asset business in Russia necessitates “control systems for bitcoin transactions.” As experts pointed out, similar procedures already exist in other nations, though no information about which jurisdictions they were referring to is publicly available. The session’s main takeaway is the group’s apparent support for the Finance Ministry’s regulatory strategy, albeit with some technical objections. Experts advised the Ministry to improve the bill’s language on non-institutional mining, traditional banks’ roles, know your customer (KYC) procedures, and illicit crypto use.

If it follows the advice of its own working group, the lower house will support the Finance Ministry’s position in the heated fight with the CBR, which favours a limited approach to cryptocurrency.

The Central Bank’s position in the crypto conflict appears increasingly fragile, with early hints of parliamentary support and a new regulatory roadmap presented by deputy prime minister Dmitriy Chernyshenko. The proposed blanket prohibition by the regulator has few institutional supporters in both the executive and legislative branches of government.

It’s a wrap for this story.

 

Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
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