11 Oct 2022 · 1 min read

Russian Government to Hold Key Crypto Regulation-themed Meeting Today

Source: Mikhail/Adobe

Russian ministers have tabled a meeting on the thorny matter of crypto regulation today – as the government attempts to finalize its much-delayed attempts to police the sector.

A stand-off between the relatively pro-industry Ministry of Finance and the more conservative Central Bank has resulted in a regulatory impasse for the sector that has lasted several years. Efforts to regulate the sector thus far have resulted in delay after delay. And while a small amount of common ground has been found as the bank reluctantly warms to crypto, the two parties are still some way apart when it comes to crypto legislation.

To date, the only piece of crypto-related legislation passed by Russia’s State Duma has been a law that prevents the use of crypto as a form of payment. The law was dismissed by experts as a “mere glossary of terms.”

But it appears that the Kremlin is running out of patience – and wants the parties to finalize a draft law before the year is out.

Finversia quoted Ivan Chebeskov, the head of the financial policy department of the Ministry of Finance, as stating that the ministry needed a “couple more days” to fine-tune its policies. But he confirmed that a “government meeting” on the matter had been slated for October 11.

Chebeskov added that some “smaller” Russian businesses were already doing business in crypto and added:

“We would like to give [companies] a legal foothold for the use of cryptoassets in business. And we are currently discussing this issue with the Central Bank.”

Chebeskov noted that the ministry wanted to “create a mechanism for businesses” who want to make use of crypto as a settlements tool in international trade.

But the Prime Minister, Mikhail Mishustin, has given the ministry and the Central Bank an ultimatum. The PM states that the parties had “until the end of the year” to “develop an agreed position on draft federal laws governing the issuance and circulation of digital [assets] in Russia.”

Mishustin also told the ministry and the bank that their draft bill should also cover crypto mining regulation and “the use of digital assets” in international transactions. Industrial miners, who have been calling for regulation for several months, will likely welcome the development.