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FEATURE Crypto Weekly
Regulation of Cryptocurrencies Outlined by Russian Authorities T
he document seen by Reuters on Friday shows Russian authorities have drawn up a 'road map' that envisions restrictions on cryptocurrencies but not a complete ban on trading and mining, as advocated by the central bank. Politicians have urged the central bank to rethink its policy of restricting cryptocurrency trading and energyintensive mining on Russian soil due to financial instability concerns.
to ban ownership of cryptocurrencies," Elizaveta Danilova, head of the central bank's financial stability department, said later on Friday.
projects with Russian roots as proof that banning cryptocurrencies slowed the development of the IT industry significantly.
According to Fitch Ratings, the proposed ban will limit the exposure of the Russian financial system to risk but may slow down innovation and slow down the technological development of Russian banks in the long run.
The report called for the road map to be approved soon. Central bank official Danilova said no decision had been made. Legal action cannot be taken by either the central bank or the government... All parties have been contacted."
President Vladimir Putin has requested that a consensus be reached. Members of the finance, economy, digital, interior ministries, the FSB security service, and the central bank were involved in its development. The road map was reportedly signed by Deputy Prime Minister Dmitry Chernyshenko, as first reported by business daily RBC. Chernyshenko's representative confirmed the document's authenticity.
The working group's proposal would allow only Russian banking institutions to purchase and sell cryptocurrencies. The document suggests creating procedures to block foreign crypto exchanges from offering services to Russian users, suggesting that foreign platforms can obtain licenses to operate in Russia.
As an example of the problems mining could cause, Kazakhs, the world's second-largest Bitcoin mining hub, were cited. This week, Putin pointed to Russia's competitive advantages of surplus electricity and well-trained personnel as reasons for being able to handle the situation.
According to the document, all agencies, except the Bank of Russia, supported the road map points. The central bank acknowledged that it was familiar with the draft. It is deemed necessary to draft a law banning the issue and circulation of private digital currencies on Russian soil, Danilova said later on Friday, adding that "We do not intend
February 2022 | Volume 13
Reuters reported this week that Binance, the largest cryptocurrency exchange globally, plans to expand into Russia.
In August, Russia accounted for 11.2% of global "hashrate" (crypto jargon for the amount of computing power used by Bitcoin computers).
Cryptocurrency mining, in which powerful computers solve complex mathematical puzzles as part of a global network, continues to be opposed by the central bank. It warns about inefficient energy consumption and environmental impact. The report cited the many cryptocurrency
Russia plans to test a digital rouble to facilitate payments for individuals and businesses in response to Western sanctions. Fitch said that the digital rouble might cause some deposits to leave the banking system, increasing competition for funding and raising interest rates modestly.
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