Vladimir Putin, the President of Russia has asked the Central Bank of Russia to reach a consensus with the country’s Ministry of Finance on the issue related to cryptocurrency.
It can be recalled that on Tuesday, Russia’s Ministry of Finance discouraged a complete prohibition of crypto trading and mining in the country, citing how such a move could hurt Russia’s ability to compete in the technology sector.
During a videoconference meeting with the nation’s government officials on 26th January, the President said he’s aware of discussions related to crypto regulation. He emphasized the fact that Russia has a competitive advantage over crypto mining due to the surplus electricity and availability of well-trained personnel in the country.
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Putin said there is a need for crypto regulation due to the high volatility of digital currencies, which he thinks would protect Russians from the risk involved.
Vladimir Putin noted:
“The Central Bank does not stand in our way of technological progress and is making the necessary efforts to introduce the latest technologies into this area of activity.”
“Although, of course, we have certain competitive advantages here, especially in the so-called mining, referring to the electricity surplus and well-trained, available personnel in the country.”
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On 20th January, Russia’s Central Bank presented three proposals. The first proposal aims to prohibit cryptocurrencies as means of payment in the country. The second is about banning crypto mining, while the third aims to prohibit financial institutions from investing in cryptocurrencies.
The proposals read as follows:
“Establish liability for the violation of the statutory ban on using cryptocurrencies as a means of payment for goods, works and services sold and bought by Russian residents, whether legal entities or individuals. Prohibit the organization of the issue and/or the issue and the organization of the circulation of cryptocurrencies (including by cryptocurrency exchanges, cryptocurrency exchange offices, and P2P platforms) on the territory of the Russian Federation and establish liability for breaching this ban.
“Cryptocurrency mining should be banned as it creates unproductive consumption of electric power, which threatens the power supply of residential buildings, social infrastructure, and enterprises and implements Russia’s environmental agenda.
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“Prohibit financial institutions’ investment in cryptocurrencies and related financial instruments like ETFs as well as the use of Russian financial intermediaries and Russian financial infrastructure to conduct cryptocurrency transactions, and stipulate liability for violating this ban.”
