Russian Finance Ministry Submits Proposals for Digital Currency Regulation
Just days after the future of Russia’s digital currency industry looked bleak following a proposed ban, the country’s finance ministry submitted proposals for a regulatory framework for digital currency. According to local reports, the ministry estimates that a total ban would lead to losses amounting to billions of rubles and believes that implementing enabling regulations is the best approach.
As reported by CoinGeek, the Central Bank of Russia recently proposed a blanket ban on trading, issuing, and mining digital currencies. He claimed that they had become a haven for illicit activities and posed a serious threat to the Russian financial system.
The proposal sparked an outcry from many in Russia and beyond. One of the factions that expressed opposition to the proposal was the Ministry of Finance. Ivan Chebeskov, a senior ministry official, said: “We need to regulate, not ban [digital currencies].”
The ministry has just unveiled its regulatory proposals for the sector. According to a report by local news agency RBC, she had submitted the proposals to Dmitry Chernyshenko, Deputy Chairman of the Government of the Russian Federation.
RBC reports that the ministry is proposing that the digital currency sector be integrated into the financial services industry. With this, Virtual Asset Service Providers (VASPs) are expected to adhere to stricter regulations, including implementing measures that identify merchants’ personal data.
The ministry further pointed out that the sector, which is experiencing parabolic growth in Russia, can be a great source of revenue for the government. It will also improve the government’s ability to track criminal activity.
This distinction is critical, especially at a time when most regulators have criticized digital currencies for harboring criminals and giving them anonymity. However, as Dr. Craig Wright has repeatedly emphasizedBitcoin is private, not anonymous.
According to estimates of the Ministry of Finance, about 2 trillion rubles have been invested in Russian digital currencies. Moreover, the country is the second largest block reward mining center in the world after the United States.
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