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The breakthrough could finally put an end to a long-standing crypto impasse in Moscow. It could also see Russia belatedly start regulating the crypto sector.
Russian Government’s Crypto ‘Breakthrough’
According to the media outlet RBC, the Ministry of Finance, the Central Bank, and Rosfinmonitoring have “agreed on an approach to regulating cryptocurrencies.”
Rosfinmonitoring is the country’s anti-money laundering and counter-terrorism financing agency. It has recently called for Moscow to fast-track crypto regulations after the Financial Action Task Force (FATF) downgraded Russia’s compliance rating.
The FATF noted that Russia had adopted “insufficient regulation of virtual assets and cryptocurrencies” at a February 23 plenary meeting.
The Ministry of Finance and the Central Bank have been at loggerheads over crypto policy for years.
The ministry wants to regulate crypto and legalize industrial mining. It also wants to let Russian firms use crypto as an international payment tool.
Miners this month petitioned ministries in a third concerted effort to have their industry placed on an official register of licensed business activities.
Ministries have responded “positively,” Russian reports have claimed. However, the Russian government is not united on the matter.
The nation’s trade and industry ministry is reportedly unhappy with the proposal.
However, the acting director of the Financial Policy Department of the Ministry of Finance, Alexey Yakovlev, said “both the state and market participants” were interested in legalizing the industry.
Miners have claimed Moscow can expect to raise millions of dollars worth of tax every year from their booming industry.
They have also claimed that if Moscow nurtures their industry, Russia will be able to displace the United States as the world’s biggest crypto mining power.
Anton Siluanov (left), Russia’s Minister of Finance. (Source: Studio Production/YouTube)
Third Time Lucky for Russian Crypto Miners?
The Ministry of Finance has reportedly begun drafting a bill that will deal with matters related to crypto mining.
The same ministry’s last attempt to create a crypto bill resulted in abject failure in 2022, when the Central Bank countered with its own rival bill.
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The crypto-skeptic Central Bank’s 2022 bill proposed a China-style ban on almost all forms of crypto-related activities.
Crypto Consensus Forming in Moscow?
However, Yakovlev offered hope. He said that both the bank and Rosfinmonitoring were “consulting” with the ministry on the draft bill.
Yakovlev said the bill would address matters including how miners must handle coins. The bank has previously said it will only countenance crypto mining if miners swap their coins for fiat on overseas crypto trading platforms.
Law enforcement agencies have expressed their destain for this plan, saying that it will “open the door to money laundering.”
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RBC also quoted a Ministry of Finance spokesperson as “expressing the hope” that the State Duma would “be able to consider a bill on the regulation of cryptocurrencies” in the current session.
Yakovlev has previously said it “would be pointless” for the Russian government to “attempt to ban crypto mining.”
In March 2022, he poured cold water on ministry proposals to ban “private” mining – and “legalize” industrial the mining sector.