Russian Ministry proposes banning cryptocurrencies, but miners and stablecoin issuers may be exempt.

The Russian finance ministry has reportedly proposed banning the circulation of crypto in the nation, but wants to make exceptions for stablecoin issuers and crypto miners.

Per Frank Media, sources “familiar with the matter” told the news agency Interfax that the proposals could be bundled with the much-delayed crypto mining legalization bill, and have already been drafted.

The ministry wants to press ahead with legislation that would officially allow industrial miners to operate in the country.

Russia’s crypto mining sector is already highly advanced, due mainly to the nation’s rich energy resources and cold winter climate.

But mining is not currently recognized as a legal form of business, nor can it be taxed accordingly.

The ministry wants to rectify this.

And it hopes the mining bill will be passed by the State Duma soon.

But it has been hampered by the crypto-skeptic Central Bank.

The bank wants to blanket-ban “private” cryptoassets like Bitcoin (BTC).

In recent months, the bank has suggested it is ready to compromise on some aspects of its stance.

And it has reluctantly given the go-ahead to trade firms who use crypto to evade sanctions.

Russian lawmakers have thus far only approved one piece of crypto-specific legislation.

This 2020 law bans the use of crypto as a form of payment and forbids firms from advertising crypto-related services.

All other bills, proposals, and the like have failed to satisfy both the pro-industry ministry and the ever-skeptical Central Bank.

But perhaps in a bid to end the years-long impasse, the ministry has now reportedly suggested “prohibiting the organization of the circulation of [cryptoassets], with the exception of [crypto] mining.”

The proposals would effectively ban crypto exchanges and crypto ATMs from Russia.

But, perhaps unsurprisingly, the proposals are already facing challenges in Moscow.

Two “law enforcement agencies” have said they “oppose the amendments.”

They agencies reportedly believe that introducing “a ban on organizing the circulation of digital currency as a whole” requires “additional discussion.”

The Federal Security Service (FSB) reportedly said that the definition of “the organization of the circulation of [cryptoassets]” needed a clearer definition.

And the Investigative Committee, the nation’s main federal investigating authority, also said the “wording proposed by the Ministry of Finance” could “cause confusion.”

Police and other officials might also be concerned that it would be hard to enforce such a ban when, per government figures, some 12% of Russians own cryptoassets.

If these objections derail the ministry’s crypto plans, it would not be not the first time law enforcement agencies have seemingly thrown up an insurmountable obstacle.

The Central Bank has previously stated that miners’ tokens should only be sold on foreign crypto exchanges.

But law enforcement agencies objected, warning that this could lead to a rise in money laundering.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more


From Digitization to Tokenization, Unified Ledger is Building the Grand Blueprint of Future Currency

The 'Unified Ledger' aims to showcase all the advantages of tokenization, and improve upon the old system by construc...


Bitcoin, XRP, and Ethereum are three top coins on the brink of a golden cross.

Bitcoin, XRP, and Ethereum — three of the cryptocurrency market’s most successful coins — are on the verge of forming...


Roatan Island Special Economic Zone Recognizes Bitcoin as Unit of Account

The Roatan Island special economic zone (SEZ) in Honduras, known as Próspera ZEDE, has officially adopted Bitcoin (BT...


Bitcoin Bulls Take a Break as Derivatives Flip: Analyzing the Market Trends 🚀💰

The recent decline of Bitcoin to $41,690 suggests a change in market sentiment, with implications for BTC derivatives...


Bitcoin: Speculators in a Hurry to Dump Their Holdings

Bitcoin and certain altcoins are attempting to bounce back from solid support levels, indicating a potential uptick i...


Rising M2 Money Supply Brace Yourself, Crypto is Turning into a 'Super Massive Black Hole

The M2 money supply, as estimated by the U.S. Federal Reserve, represents the total amount of money currently in circ...