Russia Finance Minster Thinks Crypto Should Be Regulated, not Banned

“The first that should be done is to protect the interests of citizens, consumers of such services, those buying these assets or using the cryptocurrency in certain other process solutions. In this connection, from my point of view, regulation is needed, rather than prohibition. Regulation will exactly make it possible to support transparency enabling the protection of citizens.”

In a recent report, Ivan Chebeskov, the department director of the Russia Finance Ministry, argued that regulating cryptocurrencies rather than banning them would be more advantageous to protecting Russian residents’ rights.

The finance minister’s proposal on the crypto market came just days after Russia’s Central Bank urged that cryptocurrencies be outright banned in a paper titled “Cryptocurrencies: Trends, Risks, and Measures.”

Cryptocurrencies should be restricted, according to the research, because they are volatile and provide channels for criminals to undertake unlawful business operations such as money laundering and terrorist financing.

The finance minister’s proposal on the crypto market came just days after Russia’s Central Bank urged that cryptocurrencies be outright banned in a paper titled “Cryptocurrencies: Trends, Risks, and Measures.”

Cryptocurrencies should be restricted, according to the research, because they are volatile and provide channels for criminals to undertake unlawful business operations such as money laundering and terrorist financing.

The research also stated that using digital currencies can interfere with regulators’ ability to preserve the country’s monetary policies.

The dangers of investing in cryptocurrencies can be addressed, according to the current proposal for the country’s finance ministry, by regulating rather than outlawing the crypto market.

Chebeskov produced a model for cryptocurrency market regulation and forwarded it to the government office for review to back up his suggestion to control crypto.

While waiting for the government to respond to the regulation proposal, the office of the finance minister clarifies that the government has not taken an official position, but this is the arena in which we operate.

In a similar development, Russia’s Central Bank revealed that it is considering creating its own central bank digital currency (CBDC), which will be known as the digital ruble.

According to the statement, the CBDC would not replace the country’s present currency, but will instead serve as an extra form of fiat money in Russia.

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