Russia’s Ministry of Telecom and Mass Communications has put forward the idea to set up a cryptocurrency exchange, where Russian miners can trade their digital coins for fiat money. The ministry has held consultations with representatives of the crypto sector and prepared a comprehensive concept to regulate the mining industry.
Also read: Two Russian Regions to Develop Large Scale Crypto Mining
Miners to Sell Cryptos on State-Controlled Exchange
The crypto mining sector would become more transparent and authorities would be able to easily tax transactions if miners exchanged their cryptocurrency on a Russian, government-controlled exchange. With that argument in mind, the Ministry of Telecom and Mass Communications in Moscow has proposed the creation of a crypto exchange to serve Russian miners. The idea was announced during the “Crypto Environment” conference, sponsored by Vnesheconombank, Russia’s development bank.
Mincomsvyaz has also hosted consultations with representatives of the crypto community and has framed a comprehensive concept to regulate the mining industry, Deputy Minister of Communications Alexei Kozyrev told RBC. Its main provisions have been included in the updated version of the bill “On Digital Financial Assets”, authored by the Finance Ministry.
According to Kozyrev, the new draft law will differentiate between industrial mining and small-scale, private mining. Big crypto miners will be obliged to meet certain technical requirements, he said, without elaborating on the details. The bill that is expected to regulate Russia’s crypto sector will be introduced in the State Duma within days, Deputy Finance Minister Alexei Moiseev announced on Wednesday.
“We believe they [the miners] should be doing that [exchanging cryptos] on Russian territory”, said Olga Skorobogatova, Deputy President of the Central Bank. Russia’s monetary financial institution believes that cryptocurrency operations bear the inherent risk of money laundering, as it is impossible to trace the circulation of coins all the way back to their creation.
Crusade to Legalize Cryptocurrencies
The Ministry of Finance has expressed exactly the opposite opinion. Its draft law entitles ordinary Russian citizens to buy and sell cryptos and tokens on any licensed platform – exchanges, brokers, forex-dealers, and so on. Minfin is actually on a collision course with the telecom department, as well. Deputy Minister Moiseev thinks that setting up a separate crypto exchange for miners, operating under a special regime, is inappropriate. He reminded his colleagues that the law “On Digital Financial Assets” already provides for the regulation of cryptocurrency trading.
“We have a licensing regime – Moscow Exchange and Saint Petersburg Exchange are licensed by the Central Bank. There shouldn’t be any specialized exchanges or special regimes for cryptocurrency trading”, Moiseev said, quoted by Tass. “We offer the opportunity to trade cryptos with other cryptos, and with fiat on any exchange”, the Finance Ministry official stated.
Minfin’s crusade to legalize cryptocurrencies in Russia, against almost everyone else, has caught the attention of Russia’s executive power. The Council of Ministers will discuss disagreements between the Ministry of Finance and the Central Bank. “These disagreements remain, and the government will have to decide”, Moiseev said, quoted by Insider Pro. At the end of the day, “nobody will be jailed for mining or trading Bitcoin”, the Russian official assured.
And while government institutions are bickering about future crypto regulations, the first store for mining equipment has just opened doors in Moscow.
Do you think Russian miners need a state-controlled exchange to trade their cryptos? Tell us in the comments section below.
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