The Russian Finance Ministry Calls For Crypto Regulation, Not A Ban

The Russian Central Bank recently pushed for a nationwide ban on cryptocurrency trade and mining. The bank released a proposal asking regulators for a total ban on this volatile digital asset.

However, the crypto ban proposal received opposition from the Ministry of Finance. Ivan Chebeskov, Director of the Finance Ministry, stated that the government should regulate this digital asset instead of banning it.

“We need to regulate, not ban,” Chebeskov said, “Regulation is sufficient to protect our citizens.”

“We need to give these technologies the opportunity to develop. In this regard, the Ministry of Finance is actively involved in the development of legislative initiatives in terms of regulating this market,” he added.

Chebeskov said that the authorities should provide an opportunity for the industry to develop. He made a comment during the RBC crypto conference that the Russian ministry has prepared a proposal for the regulation of digital assets and is waiting to hear the government’s position on the matter.

Andrei Lugovoy, a Kremlin lawmaker, who heads the State Duma’s working group on crypto, said banning cryptocurrencies was the Central Bank’s initiative alone.

“There are no bans in our proposed amendments – it is not for the central bank to decide what to allow and what to ban,” he stated.

It also argued that regulating the market rather than completely ostracizing it could have several potential benefits, including increased tax revenue for the state and providing law enforcement agencies with additional data to track criminal activity.

Moreover, the ministry also included statistics in its proposal that highlighted significant investments made by Russian citizens in the industry, which amount is around $25.6 billion. It added that a blanket ban would only encourage the rise of a black market for the asset’s trading while regulation could bring this capital under the government’s purview.

In the early of January 27, Vladimir Putin, president of the nation, has been made privy to the benefits of having a crypto mining industry in the country, as he noted the country’s “competitive advantages” over the same. He also called on the government and central bank to reach a consensus on the matter.

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