The Russian Ministry of Finance and the Central Bank Will Resolve Their Crypto Policy Conflicts

The Russian government’s financial ministry has stated its desire to resolve long-standing disagreements with the country’s central bank on cryptocurrency policy.

The media site RBC reports that Anton Siluanov, the minister of finance, expressed his confidence that the bank and his ministry will soon “come to an agreement” about crypto regulation.

The following is what Siluanov stated when speaking at an event at a state-run financial university: “The Central Bank and the Ministry will reach a consensus; I am certain of it. We are unable to ban the trading of cryptocurrency. Hence, this [market] requires regulation. It is my firm belief that we will discover an answer.”

For years, the Central Bank and the Ministry of Finance have been at a stalemate on cryptocurrency policy, with little progress made.

The bank has advocated for a blanket prohibition like China’s in the past, but now the government agency is seeking to control and tax cryptocurrency dealers and exchanges.

In early 2022, the ministry introduced a thorough law on cryptocurrency regulation in an effort to overcome this stalemate.

In response, the bank introduced a competing measure that would have effectively outlawed any transactions using cryptocurrency.

Since neither measure passed out of committee at the State Duma, the cryptocurrency industry has been in a state of uncertainty.

The result was a reduction in the country’s FATF compliance rating last month and demands for expedited regulation from several government agencies.

But Western sanctions and the conflict in Ukraine seem to have cornered the Russian Central Bank. The bank has reluctantly agreed to relax its position on the now-booming industry of industrial crypto mining in Russia.

Regarding cryptocurrency’s role as a medium of exchange in cross-border transactions, it has also committed to some compromises.

Here, Siluanov finds a middle ground for legislation. In his statement, he emphasized the need to collaborate with the Central Bank to explore potential avenues for using cryptocurrencies for payments, both domestically and internationally.

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