Key Insights:
- Russia might “sooner or later” legalize cryptos as means of payment.
- Russia’s Industry and Trade Minister says it is unknown when and how it will be regulated.
- The central bank was entirely opposing crypto regulation until numerous economic sanctions changed the sentiments.
The Russian authorities, so far, have been highly vocal in support of cryptocurrencies. Especially, the pile-up of economic sanctions following the ongoing invasion of Ukraine has triggered authorities to change their anti-crypto sentiments.
However, regulators across the globe are keenly monitoring whether Russia is turning to cryptos to evade sanctions and are coming up with new crypto tightening measures.
Russia to legalize crypto payments
The Minister of Industry and Trade of the Russian Federation, Denis Manturov, expressed that Russia will eventually legalize bitcoin (BTC) as legal tender.
His comments come contradictory to the Central Bank of Russia’s stance on banning the use of private crypto. However, Moscow recently announced plans to issue a central bank digital currency (CBDC).
Per Denis’s talks during the educational marathon “New Horizons,” it remains unknown when and how crypto would be regulated. He noted,
“I think so. The question is when this will happen, how it will happen, and how it will be regulated. Now both the Central Bank and the government are actively engaged in this. But everyone is inclined to understand that this is a trend of the time, and sooner or later, in one format or another, it will be carried out.”
According to local media outlet TASS, despite the central bank’s total ban on cryptos, fearing a threat to the financial system, Russian authorities are currently discussing the possibilities of embracing cryptos and mining.
However, the Ministry of Finance believes that it should regulate digital currencies and tax them, but not ban. Minister Denis noted,
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Crypto Support Strengthens
In February, the Russian government approved the concept of regulating bitcoin and other cryptos such as ether (ETH) and Litecoin (LTC), based on the proposal, which was drafted by the Ministry of Finance (MoF).
The MoF also submitted a bill in April highlighting the regulations for mining and trading. The bill stipulated new requirements for crypto exchanges and digital trading operators.