Finance Ministry backs several proposals from the FSB and Interior Ministry on cryptocurrency regulation

Several Russian agencies sent their feedback to the government on the bill regulating cryptocurrencies. Among them are the Interior Ministry, the Ministry of Economic Development, the Ministry of Digital Development, the Ministry of Energy, the Ministry of Justice, the FSB, the Federal Tax Service and Rosfinmonitoring, report “Izvestia”, citing a table of remarks on the document.

The FSB proposed obliging exchanges and wallets to provide information to law enforcement authorities, in addition to courts, and to coordinate with authorised bodies the requirements for storage and protection of information on cryptocurrency turnover.

The Federal Tax Service wants tighter regulation of unlicensed exchanges and wallets. It proposes a complete ban on their advertising within Russia.

The Interior Ministry noted that the bill does not fully regulate exchanges’ enforcement of court orders to seize cryptocurrencies and the creation of wallets to store confiscated assets.

The Finance Ministry, which prepared the bill, agreed with the agencies’ positions.

However, the ministry did not back a number of other proposals. For instance, the FSB advocated mandatory transfer of mined cryptocurrencies to exchanges and the application of anti-money-laundering rules to mining.

The Finance Ministry also rejected the FSB’s proposal for additional regulation of cryptocurrency wallets and mining pools. The ministry says that “overly detailed and rigid regulation” of the market would drive away investors and clients.

The agency did not back the initiative of the FNS to ban trading with unlicensed crypto exchanges and wallets, as well as with individuals prohibited from transferring money.

Rosfinmonitoring stressed that digital currencies are treated as property under anti-money-laundering law. If bitcoin exchanges and wallets become subject to this regime, cryptocurrency transfers would come under control similar to banking, the agency noted.

Additionally, according to the minutes of the expert council meeting of the State Duma’s working group on cryptocurrency regulation, its members propose to drop the 50,000-ruble limit on operations for people who have not passed a special test.

As noted, unlike Bank of Russia’s restrictive position, the Finance Ministry supports regulating the bitcoin market.

The ministry has drafted the “On Digital Currency” bill, providing for conducting operations with cryptocurrencies through banks, identifying wallet holders, and separating investors by qualifications.

In April the Finance Ministry changed the terminology of the document. It introduced the concept of a professional acquirer of digital currency and a clarified definition of mining.

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