The Ministry of Finance of Russia has prepared a proposal to regulate cryptocurrencies in the country without banning them.
Earlier, the Central Bank proposed to completely ban cryptocurrencies in Russia.
President Vladimir Putin asked the departments to reach a consensus, and the Duma began preparing its own bill on the subject.
What path will Russia take on this issue?
- Cryptocurrencies in Serbia - everything you need to know
- Will bitcoin become legal tender in the world?
- The IMF requires El Salvador to ban Bitcoin as a means of payment
The Ministry of Finance proposes that all operations with cryptocurrencies be conducted through Russian banks, identify the owners of cryptocurrencies and divide buyers into qualified and unqualified investors.
The concept envisages that natural and legal persons carry out transactions with cryptocurrencies: for this they will have to go through simplified or full identification and open an electronic wallet in a bank.
The Ministry of Finance proposes to develop a procedure for the complete identification of buyers, modeled on the Swiss project Aximetry, which collects a detailed database of citizens' personalities - passport, bank account and card numbers, which is used to purchase virtual assets.
According to the concept of the Ministry of Finance, digital currency exchanges will be able to operate on the Russian market, but for this they will have to open a representative office in Russia and carry out technical integration with Russian banks.
The distribution of supervisory functions between the Central Bank, the Ministry of Finance, Rosfinmonitoring, the Federal Tax Service, the Ministry of Digital Development and the Office of the Chief Prosecutor was also proposed.
To control and monitor transactions with cryptocurrencies, it is suggested to use the service Transparent Blockchain developed by Rosfinmonitoring.
"In my opinion, this field needs to be regulated, not banned.
"The regulation will only ensure transparency that will protect citizens," said Ivan Chebeskov, head of the financial policy department of the Ministry of Finance.
See the explanation: What is Bitcoin
Why the Central Bank is against cryptocurrencies?
Russia's central bank has proposed a total ban on the use and creation of all cryptocurrencies in one of the world's largest cryptocurrency mining nations, citing the dangers they pose to the country's financial system and environment.
In a document dated January 20 cryptocurrency regulation plans in Russia have been announced.
According to the proposals of the Central Bank, it is necessary to completely ban the issuance, mining and circulation of cryptocurrencies, as well as introduce liability for Russian individuals and legal entities for violating the ban on the use of cryptocurrencies as a means of payment.
The bank believes that this is necessary to "reduce threats caused by the spread of cryptocurrencies".
"The current scale and further expansion of cryptocurrency mining in Russia carries significant risks to the economy and financial stability," the report said.
At the same time, it was emphasized that Russians will not be banned from owning cryptocurrencies.
"We do not propose that citizens be banned from owning cryptocurrency," Elizaveta Danilova, director of the financial stability sector of the Central Bank, explained to journalists.
Russia has previously banned the use of cryptocurrencies for payment, and the Central Bank banned mutual funds from investing in them in December, reports Bloomberg.
In Thursday's report calls for accountability for individuals and businesses that circumvent the rules, citing estimates that Russian cryptocurrency traffic is around five billion dollars a year.
What is the attitude of Putin and the parliament
President Vladimir Putin made it clear on Wednesday that he does not want to get involved in the dispute between the Central Bank and the Ministry of Finance over cryptocurrencies.
"I asked the Russian government and the Central Bank to come to some kind of unanimous opinion in the near future," Putin said at the meeting.
At the same time, the president defended the position of the Central Bank, noting that the regulator in this dispute "is not standing in the way of technical progress and is making the necessary efforts to introduce the latest technologies in this area."
According to Putin, Russia has certain competitive advantages over other countries in cryptocurrency mining due to excess electricity and well-trained personnel.
The State Duma has not yet formulated a clear position on cryptocurrencies either.
On Thursday, the head of the financial market committee, Anatoly Aksakov, told RIA Novosti that the committee had begun preparing a bill aimed at regulating the cryptocurrency sector, but did not reveal details.
How cryptocurrencies are regulated in other countries
- National Bank Kine announced a complete ban on all cryptocurrency transactions in the fall of 2021
- A direct ban on the use of cryptocurrencies as a means of payment also applies in Bangladesh, Vietnam, Egypt, United Arab Emirates i Turkey
- U SAD, cryptocurrency exchanges are legal and subject to the Bank Secrecy Act
- Japanese authorities recognize digital currencies as legal property under the Payment Services Act
- U Switzerland cryptocurrencies are classified as assets
- Cryptocurrencies are not legal tender in Great Britain, but are recognized as property
- U Bolivia i Ecuador the use of cryptocurrencies and the operation of crypto exchanges are prohibited.
- El Salvador became the first country in the world where bitcoin received the status of legal tender - on a par with the US dollar.
Follow us on Facebook i Twitter. If you have a topic proposal for us, contact us at bbcnasrpskom@bbc.co.uk
Bonus video:
