The Russian government bodies, the nation’s anti-money laundering agency, and the Central Bank have reportedly reached a consensus on crypto policy, putting an end to a long-standing impasse in Moscow. The Ministry of Finance, the Central Bank, and Rosfinmonitoring have agreed on an approach to regulating cryptocurrencies. This breakthrough could see Russia finally start regulating the crypto sector, with the Ministry of Finance wanting to legalize industrial mining and use crypto as an international payment tool. However, there is division within the government, with the trade and industry ministry reportedly unhappy with the proposal.
Miners in Russia have been pushing for their industry to be placed on an official register of licensed business activities, with ministries showing a positive response to their requests. The mining industry believes that Moscow can raise millions of dollars worth of tax revenue every year by nurturing the sector, potentially allowing Russia to surpass the United States as the world’s biggest crypto mining power. The Ministry of Finance is drafting a bill that will address matters related to crypto mining, after a previous attempt to create a crypto bill failed in 2022 due to opposition from the Central Bank.
The Central Bank, which has been skeptical of crypto, proposed a bill in 2022 that would have banned almost all forms of crypto-related activities, similar to a China-style ban. However, there seems to be a crypto consensus forming in Moscow, with the bank and Rosfinmonitoring consulting with the Ministry of Finance on the draft bill. The bill is expected to address how miners handle coins and may require them to swap their coins for fiat on overseas crypto trading platforms. Law enforcement agencies have expressed concerns that this could lead to an increase in money laundering activities.
A Ministry of Finance spokesperson expressed hope that the State Duma would be able to consider a bill on the regulation of cryptocurrencies in the current session. The Ministry has also stated that attempting to ban crypto mining would be pointless and has rejected proposals to ban private mining while legalizing the industrial mining sector. The Russian government’s move towards regulating the crypto sector comes after the Financial Action Task Force downgraded Russia’s compliance rating due to insufficient regulation of virtual assets and cryptocurrencies. This development could mark a significant step in the regulation of crypto in Russia and potentially open up new opportunities for the industry.
