Following the meeting with Vladimir Putin, Russian regulators announced that cryptocurrencies will officially be regulated in Russia. The central bank and the finance ministry will now work together to come up with one draft law to provide a basic regulatory framework for cryptocurrencies including bitcoin, which is expected by the year’s end.

Also read: Putin Tells Central Bank Not to Create Unnecessary Barriers to Cryptocurrencies

Putin Has Spoken

At the meeting on cryptocurrencies between Putin and top Russian regulators on Tuesday, the decision to regulate cryptocurrencies in Russia was reached. “The Russian government has decided to officially regulate the mining and circulation of cryptocurrencies,” RT described and quoted Finance Minister Anton Siluanov announcing on Wednesday that:

We have agreed on the following: the state should regulate the process of issuing cryptocurrencies, the process of mining, the process of circulation…The state should head this situation and regulate it legally.

The meeting was attended by Siluanov, Central Bank Governor Elvira Nabiullina, Central Bank Deputy Governor Olga Skorobogatova, Presidential Aide Andrei Belousov, and Qiwi CEO Sergei Solonin.

In the meeting, Putin acknowledged the risks associated with cryptocurrencies. However, he also stressed that “it is important not to create unnecessary barriers, of course, but rather to provide essential conditions for advancing and upgrading the national financial system.”

Finance Ministry to Work With Central Bank

Currently, cryptocurrencies including bitcoin are not regulated in Russia despite many attempts by various government departments to put forward proposals to regulate them. Both the central bank and the finance ministry have been working separately on a draft law to regulate cryptocurrencies. A draft bill was supposed to be introduced in October but was postponed due to a lack of consensus among the regulators.

The finance ministry proposed to legalize cryptocurrencies but was opposed by the central bank due to “a loss of control over the money flows from abroad.” This week, the ministry proposed to register cryptocurrency miners and to license crypto exchanges.

After the meeting with Putin, however, Siluanov told journalists that the finance ministry and the central bank will now work together to prepare one basic draft law to regulate cryptocurrencies, Tass reported on Wednesday and quoted him saying:

We will prepare the draft law together with the Central Bank…I think we will be able to determine the basic regulatory positions before the end of the year.

“According to him, with regard to regulation, the functions of the Ministry of Finance, the Central Bank and Rosfinmonitoring will be delineated,” the publication elaborated.

Possible Restrictions

In addition, Deputy Finance Minister Alexei Moiseev indicated on Wednesday that there may be some restrictions. “Russia’s Finance Ministry supports the idea to limit the amount cryptocurrency that can be purchased by individuals,” Tass detailed and quoted him saying:

We said that restrictions are needed on purchases and sales, accounts, miners’ taxation and so on…Yes, there is such an idea, we support it. We should discuss the amounts. We should look at international practice.

This is not the first time Moiseev talked about restricting the purchase and sale of cryptocurrencies in Russia. In August, he proposed listing them on regulated exchanges but banning non-qualified investors from buying and selling them. However, his proposal did not receive a lot of support from other regulators. First Deputy Prime Minister Igor Shuvalov promptly commented on Moiseev’s suggestion, stating that no legislation had been decided. The finance minister followed up with a suggestion that cryptocurrencies could be made available to anyone in the same way federal loan bonds (OFZ) are.

How do you think Russia will regulate cryptocurrencies? Let us know in the comments section below.

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