Russian Finance Ministry To Draft 2 Crypto Laws As Central Bank Prepares Its Own Bills CryptoBlog
The Russian Ministry of Finance has proposed the adoption of two pieces of legislation aimed at regulating cryptocurrencies. The projects will be presented for public discussions which are expected to continue until March 18. The media revealed that the Bank of Russia was working on alternative bills.
Russian Finance Ministry to Open Consultations on New Crypto Legislation
The Russian Ministry of Finance has started drafting two new bills aimed at comprehensively regulating cryptocurrencies and related activities in the country. The Treasury Department is proposing a new law “On Digital Currency” and a bill to amend other legislative acts in connection with it.
According to the Russian federal portal of draft regulatory acts, the texts have not yet been published. Afterwards, consultations will begin and will continue until March 18, the RBC business newspaper reported. The announcement comes after earlier this month the Ministry of Finance and the Central Bank of Russia were instructed to prepare new crypto legislation by February 18.
The two institutions are at odds over the future of cryptocurrencies in Russia, with the CBR proposing to ban a wide range of coin operations, including issuing, trading and mining, while Minfin lobbied for legalization under strict rules. The federal government has approved a regulatory plan for the crypto space based on the Treasury concept.
Meanwhile, the media disclosed that the Bank of Russia had prepared its own legislative proposals designed to prevent the issuance, circulation and use in payments of “private digital currency” in the Russian Federation. According to RIA Novosti, the regulator is insisting on imposing fines of up to 1 million rubles ($13,000) for violating these restrictions.
Tass, which claims to have the documents, quotes a financial industry source who told the news agency that the central bank bills were provided to the finance ministry. In an explanatory note, the monetary authority specifies that the sanctions should be imposed on the entities and individuals involved in the prohibited operations.
The regulator also wants to prohibit the dissemination of information on this type of currency and on any of the listed activities. The CBR further suggests that banks, other financial institutions and entities operating within the Russian national payment system be prohibited from holding cryptocurrencies under threat of administrative action, while crypto-related transfers in the name of of people should be rejected.
The Bank of Russia’s proposals reflect its hardline stance on cryptocurrencies, which has isolated it among government institutions in Russia, most of which favor regulation over prohibition. They come after the launch of the pilot phase of its own central bank digital currency (CBDC) project. The prototype of its platform was completed in December, and the CBR announced this week that it had successfully carried out the first transactions between digital wallets in rubles with the help of commercial banks participating in the trials.
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