Russia to press on with cryptocurrency legalization

The expert council of the State Duma’s Working Group on the Legislative Regulation of cryptocurrencies will hold a meeting to discuss the bill “On Digital Currency”.

According to a document obtained by the Bitnalog project-team, one item on the agenda will be “analysis and ways to mitigate the central bank-identified risks”.

The bill introduced by the Ministry of Finance regulates the circulation and issuance of cryptocurrencies in the Russian Federation. The document equates digital currencies with property and prohibits their use as a means of payment.

In January the Central Bank expressed support for banning the circulation and mining of digital assets in the country. The regulator voiced the proposals in the report “Risks of cryptocurrencies and possible regulatory measures”.

According to the media, the agencies unsuccessfully sought to align their positions, and the Central Bank introduced amendments envisaging a ban.

Experts criticised the Ministry of Finance’s proposed regulatory framework, including for errors in the conceptual apparatus. The matter is also on the agenda of the expert council meeting of the working group, which will take place on March 4.

The expert noted that one of the main reasons Russia cannot circumvent sanctions using cryptocurrencies is that the government has not created the necessary infrastructure.