Russian Finance Ministry to Draft 2 Crypto Laws as Central Bank Prepares Own Bills – Two pieces of legislation which is aimed at regulating cryptocurrencies have been submitted by the Russian Ministry of Finance.
The drafts will be given for public comment, which will go until March 18. According to media sources, the Bank of Russia has been developing alternative bills.
The Treasury Department has proposed a new law “On Digital Currency” as well as a bill to change current laws related to it.
The texts have yet to be released, according to the Russian government portal for draft regulatory acts. Consultations will then begin and go until March 18, according to RBC, a business news outlet. The announcement comes after the Russian Ministry of Finance and the Central Bank were charged with drafting new crypto legislation earlier this month.
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The CBR has proposed a ban on a wide range of coin operations, including issuance, trading, and mining, while Minfin has lobbied for legalization under rigorous controls. Based on the Treasury’s concept, the federal government authorized a plan to control the crypto area.
Meanwhile, according to media reports, the Bank of Russia has produced its own legislative proposals aimed at prohibiting the issuance, distribution, and use of “private digital money” in Russian Federation payments. According to RIA Novosti, the regulator wants to punish violators up to 1 million rubles ($13,000) for breaking the rules.
According to Tass, which claims to hold the documents, the central bank’s draft laws have been submitted to the finance ministry, according to a source in the financial industry. The monetary authority states in an explanatory note that sanctions should be imposed on businesses and individuals participating in unlawful operations.
The regulator also seeks to prohibit the spread of knowledge about this type of currency, as well as any of the other actions specified. Banks, other financial institutions, and companies operating inside Russia’s national payment system should be forbidden from holding cryptocurrencies under pain of administrative action, according to the CBR, while crypto-related transfers on behalf of individuals should be disallowed.
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The Bank of Russia’s proposals reflect the bank’s strong attitude on cryptocurrencies, which has isolated it among Russian government institutions, who prefer regulation over banning.
They follow the debut of its own central bank digital currency (CBDC) project’s trial phase. The CBR stated last week that it had successfully conducted the first transactions between digital ruble wallets with the help of commercial banks participating in the trials, which were concluded in December.
