Russia Prepares Roadmap for Bitcoin and Crypto Regulation: Report

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Russian government speaks out in favor of establishing comprehensive Bitcoin and cryptocurrency legislation as members discuss potential negative side effects of outright ban on industry, central bank suggests .

Putin reportedly backed government efforts to regulate the asset class despite comments from the Bank of Russia last week about the alleged risks of allowing bitcoin to proliferate in the country. The president said in a Wednesday meeting with government officials that Russia has “certain competitive advantages” in bitcoin mining, namely surplus energy and a well-educated workforce, after having said the central bank would not stand in the way of technological innovation.

More specific guidelines to regulate cryptocurrency in Russia followed Putin’s comments as Deputy Prime Minister Dmitry Chernyshenko on Friday signed a roadmap valid until the end of the year, RBC reported. The document provides for the regulation of Bitcoin, the identification of customers, the establishment of responsibilities in the event of violations and the possibility of having cryptocurrency lending platforms and related assets in the country.

Andrey Lugovoy, first deputy head of the Security and Anti-Corruption Committee of the State Duma, the federal assembly of the Russian Federation, said on Friday that the legislature would support the government’s roadmap to regulate cryptocurrencies, given that it is considering an outright ban. on this “unconstructive” market because it risks creating a “black market” in the economy, local state news agency RIA Novosti reported.

“When we talk about digital financial assets, cryptocurrency, crypto market, we have to understand that we are not just trying to amend some bills, we are trying to regulate a new entity to which the world whole is facing, and we need to determine our position,” Lugovoi said, according to a translated version of the report.

According to RBC, the roadmap is the result of a coordinated effort between representatives of different departments and agencies, including the Ministries of Finance and Economic Development, the Attorney General’s Office, the Federal Security Service and the Revenue Service. , the interior and digital ministries. development and the Bank of Russia. The proposals included in the document reportedly received support from all relevant agencies except the central bank.

Bank of Russia financial stability chief Elizaveta Danilova said on Friday that the central bank considers comparing Bitcoin to cash to be “wrong and very dangerous” because digital currency is an instrument “accompanied by risks. “even if there are regulations.

“These risks will be excessive and we expect more and more countries to come to the conclusion that cryptocurrencies should be banned,” Danilova said, according to a TASS report. “Some [people] mistakenly consider them as money, although they are not.

Danilova added that she thinks it’s impossible to equate bitcoin and cryptocurrencies with stocks and bonds because the new assets have “no fundamental value” and “look like a financial pyramid.”

Although the views of the Bank of Russia contrast sharply with the government’s stance on cryptocurrency trading and mining, Danilova said they could come to a consensus as Putin demanded, noting that the central bank has no right to legislative initiatives.

“In any case, we must coordinate the proposed measures with the government, with our parliament – the State Duma, the Federation Council – we will actively communicate with all these parties now,” she added.

The Bank of Russia had called for a complete ban on bitcoin and cryptocurrency trading, ownership and mining last week, but the Finance Ministry was quick to respond, justifying caution, as such a path could lead Russia to innovation lag in the rapid pace. technology sector.

Bitcoin miners flocked to Russia last year after China’s ban on the industry led to an exodus of ASIC machines. The Eastern European country’s cold climate and energy-rich regions create a powerful set of conditions conducive to the proliferation of mining.

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