Russian Ministry of Finance suggests a ban on cryptocurrencies, but with exceptions for stable coins and crypto miners

Russian Ministry of Finance suggests a ban on cryptocurrencies, but with exceptions for stable coins and crypto miners

Russia is considering a ban on cryptocurrencies in the country, but the Ministry of Finance is planning exceptions to StableCoin emitters and crypto miners. The proposals of the ministry are now to be bundled with the draft law to legalize crypto mining.

The ministry drives legislation to officially enable industrial miners to work in the country. The crypto mining sector in Russia is already very advanced, which is mainly due to the rich energy resources and the cold winter climate of the country. So far, however, the mining has neither been recognized as a legal business form nor can it be taxed accordingly. The Ministry of Finance is planning to change this and hopes for an early adoption of the Mining Act by the State Duma.

However, there is still resistance from the cryptoskeptic central bank. This wants to ban "private" cryptocurrencies such as Bitcoin. However, the central bank has indicated in recent months that it could compromise on some aspects of its point of view. So she reluctantly gave the green light for trading with companies that use cryptocurrencies to avoid sanctions.

So far, the legal situation of crypto in Russia is unclear. The only crypto -specific law that has been passed so far prohibits the use of cryptocurrencies as a means of payment and advertising for cryptocurrency services. So far, neither the Ministry of Finance nor the Central Bank have been able to satisfy all other legal draft and proposals.

In order to end the long-term patient situation, the Ministry of Finance is now proposing to prohibit the circulation of cryptocurrencies in the country, with the exception of crypto mining. This would mean that crypto exchanges and crypto monetary machines in Russia would be prohibited. However, these suggestions are already encountering resistance in Moscow. Two law enforcement agencies have stated that they are against these changes. They call for a more precise definition of the "organization of the circulation of cryptocurrencies" and fear confusion.

The enforceability of such a ban could also be problematic, since about 12% of the Russians have cryptoassets. It would not be the first time that the law enforcement authorities block the ministry's crypto plans. The central bank had previously stated that the tokens of the miners may only be sold on foreign crypto bonds. However, the law enforcement authorities rejected this and warned of an increase in money laundering.

It remains to be seen how the discussions about the ban on cryptocurrencies and crypto mining will develop in Russia. It seems that there are still many uncertain points and different points of view. Ultimately, the decision will depend on the political and economic development of the country.