The Federation Council (equivalent to the US Senate), the upper house of the Russian parliament, promotes the regulation of cryptocurrencies and wants to participate in the creation of new laws in this area.

Russia is tightening crypto regulations and calling for a complete ban

As reported, panel members hinted last month that cryptocurrencies would not be frozen out of the Russian economy and stated that cryptocurrencies “may have a future” in the country.

For the time being, however, the Federal Assembly will double this mood – by forming a “working group” with others that will “further develop” the “regulations” on crypto currencies.

At the Finopolis forum on “Innovative Financial Technology”, the Vice President of the Federation Council, Nikolai Zhuravlev, announced that the new group would include representatives from various government agencies, including the Ministry of Finance, the Ministry of Economic Development, the Money Laundering Authority, the Federal Financial Supervisory Authority (Rosfinmonitoring) , Tax authorities, law enforcement agencies, parliament, the central bank and – yes, perhaps very importantly – the domestic cryptocurrency industry.

The group will hope to do what many of its predecessors failed to do: break the impasse between pro-business forces in government and voice calls for an outright Chinese-style ban on anything related to crypto.

Concerns related to Russia’s push to regulate cryptocurrency

Despite regulatory efforts, it will not be easy to completely ban crypto-related activities.

Shuravlev stated that there could potentially be further restrictions after Moscow banned the use of cryptocurrencies for payments about a year ago.

He says:

“We have introduced a ban on the use of cryptocurrencies as a means of payment. But as for the problem of banning other crypto-related activities, this is a more difficult and controversial topic. “

Several speakers at the same event called for a more progressive approach.

Maxim Bashkatov, head of the legal development department of the Center for Strategic Studies Fund, at the Finopolis forum for innovative financial technologies, warns:

“At the moment it remains unclear whether the draft law is applicable in the event that a Russian citizen or a Russian legal person issues tokens abroad but distributes them in Russia.”

Bashkatov added that several points were lacking in clarity in the legislature’s efforts to draft laws regulating the sector.

However, any attempt to create a business-friendly regulatory framework for the crypto sector will meet strong opposition from the skeptical central bank.

Earlier this week, the bank issued a press release warning against keeping regulated financial institutions away from services that involve working with cryptocurrencies and derivative risks.

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