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Russian finance ministry and central bank hit common ground, legislation likely on crypto

The finance ministry in Russia has said it is willing to consider proposals related to cryptocurrencies that are sent to it by the country’s central bank as long as those don’t clash with their own views on the same. This is being seen as a step in the right direction that can lead to the creation of legislation that would govern digital assets in the country. Both the finance ministry and the Russian central bank had conflicting views on cryptocurrency so far, with the former favoring allowing crypto trading in a regulated manner while the central bank proposed a blanket ban on cryptocurrency.

Tensions between the two reached a climax after the finance ministry came up with proposals on cryptocurrency regulations which it submitted to the government. Naturally, this contradicted with the central bank’s views on the same that has been proposing a complete ban on both trading and mining of cryptocurrency in Russia claiming that this poses a serious threat to financial stability in the country.

The finance ministry, on the other hand, has been asking for a more balanced approach on the matter and has been asking for allowing cryptocurrency trading within the country. The ministry however said it does not favor allowing cryptocurrency as a means of conducting monetary transactions but should only be limited in its scope as an investment tool. This, the ministry argued, will lead to the creation of a market for digital currencies that are backed by a legal framework.

Another proposal that the ministry has come up with include making it mandatory for all transactions using crypto to include user identification so that all transactions can be traced back. This will bring to an end one of the major sticking points with cryptocurrencies, that of its anonymity, something which governments around the world claim can lead to the usage of crypto for illegal or even terrorist activities.

Among the other proposals that the ministry has proposed include making it a binding requirement for all foreign cryptocurrency exchanges to obtain a license to operate in Russia. This apart, there is a financial literacy test formulated as well which should form the basis of the maximum than an individual is allowed to invest in crypto. According to ministry sources, those who clear the test will be allowed to invest up to 600,000 roubles every year in digital currencies. Otherwise, the limit is going to be 50,000 roubles annually for those who fail the tests.


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