Russian Ministry of Finance opposes national Central Bank and proposes new crypto regulation

The Russian Ministry of Finance proposed to make transactions through the banking infrastructure, obliging the participants to undergo identification and open crypto wallets through banks.

Key provisions of the concept are as follows:

  • make transactions with cryptocurrencies through the banking infrastructure,
  • identify holders of crypto wallets,
  • open crypto wallets through Russian banks,
  • open access to crypto-instruments depending on the status of the investor, qualified or unqualified,
  • track transactions in cryptocurrency through a special system called “Transparent Blockchain“.

According to the Ministry of Finance, the Russians own millions of crypto wallets with a total balance of about 2 trillion rubles ($25 billion). The Ministry of Finance believes that the lack of proper regulation of cryptocurrencies will lead to destabilization of the industry, increase of the shadow economy and fraud, while the proper control over the new industry may increase budget revenues due to the emergence of new subjects of taxation.

The letter to the Ministry of Finance also says that the concept takes into account the position of the Federal Security Service (FSB), which advocates regulation rather than a ban.

As an example of a customer identification mechanism, the letter to the Ministry of Finance cites the Swiss project Aximetria, which collects the personal data of a transaction participant (name, address, date of birth, email address and phone number, passport data, photo, bank account number, etc).

The Ministry of Finance proposes to distribute supervisory functions between the Central Bank, the Ministry of Finance, Rosfinmonitoring, the Federal Tax Service, the Ministry of Digital Development and the Prosecutor General’s Office.

Earlier, Russian President Vladimir Putin pointed to the prospects of Russia in the crypto mining market. At a meeting with members of the government, he noted that Russia has a surplus of electricity and highly professional personnel.

“I would ask the Russian government and the Central Bank during the discussion to come to some kind of consensus and report on the results that will be achieved during this discussion.”

Later, Bloomberg, citing its sources, reported that the Russian president advocates the legalization of mining in those regions where there is an excess of electricity. Such regions are the Irkutsk Region, the Krasnoyarsk Territory and Karelia.


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