Russian Ministry of Finance suggests a ban on cryptocurrencies, but plans exceptions for stable co-emitters and miners

Russian Ministry of Finance suggests a ban on cryptocurrencies, but plans exceptions for stable co-emitters and miners

The Russian Ministry of Finance has proposed to ban the circulation of cryptocurrencies in the country. However, exceptions for stable coin emitters and cryptocurrency miners are to be made. The proposals could be bundled with the already planned law to legalize crypto mining.

The Ministry wants to advance legislation that allows industrial miners to work in the country. The crypto mining sector in Russia has already progressed, which is due to the rich energy resources and the cold winter climate of the country. However, the mining is currently neither recognized as a legal form of corporate, nor can it be taxed. The Ministry would like to change this situation and hopes that the mining law will soon be passed by the State Duma.

However, the crypto -ceptic central bank is a challenge. It wants to ban “private” cryptoassets such as Bitcoin. In the past few months, however, the bank has indicated that it would be ready to compromise in some aspects of its attitude. It also allowed trade companies to use cryptocurrencies to avoid sanctions.

In terms of the legal situation of crypto in Russia, the legislature has so far only passed a crypto -specific law. This law prohibits the use of crypto as a means of payment and prohibits companies advertising for crypto -related services. All other draft laws and proposals could not satisfy the industrial -friendly ministry of finance or the cryptoskeptic central bank.

In order to end the years of dead end, the Ministry of Finance has now proposed to prohibit the circulation of cryptocurrencies, with the exception of crypto mining. This would effectively ban crypto exchanges and crypto money machines in Russia.

The Ministry of Finance already encountered challenges. Two law enforcement authorities reject the changes and call for further discussions. The Federal Security Service (FSB) and the state's investigation committee emphasize the need for a clearer definition and that the proposed wording could create confusion.

It could also be difficult to enforce such a ban, since about 12 % of Russians have cryptocurrencies. In the past, law enforcement agencies have already raised obstacles, such as the demand that Miner token should only be sold on foreign crypto exchanges while warning of the increase in money laundering.

It remains to be seen whether the objections of the law enforcement authorities will become the crypto plans of the Ministry of Finance. In the meantime, it is speculated whether the planned law to legalize crypto mining has a chance of implementation.