The Bank of Russia drafted a bill to ban cryptocurrencies

The Bank of Russia has prepared a bill to ban the issue and organization of the circulation of private digital currency in the country. Experts explained how to perceive the initiative of the regulator

February 18, it became known that the Bank of Russia prepared a bill banning the issue and organization of circulation of private digital currency in the country. The draft law bans organization of the issue of cryptocurrency and its circulation, as well as the dissemination of information about it. The draft also prohibits banks and other financial market participants to own private digital currencies.

At the same time, the Ministry of Finance began public discussions on two draft laws on the regulation of cryptocurrencies. The Ministry announced the beginning of the development of draft laws “On Digital Currency” and “On Amendments to Certain Legislative Acts of the Russian Federation in connection with the adoption of the Federal Law “On Digital Currency”. Public discussions on the regulations will last until March 18, 2022.

“The situation resembles a circus.”

Maria Stankevich, development director of crypto exchange EXMO

Recently, the situation around regulation in Russia resembles a circus. First, the Bank of Russia wants to ban everything, then President Vladimir Putin says his weighty word and a good bill prepared by the Ministry of Finance comes out.

We, along with other major exchanges, are actively discussing with the State Duma and other authorities the opportunities and procedures adopted in other countries to improve the existing bill. And then the Central Bank publishes another document where it proposes to ban everything and impose huge fines.

I honestly think (after watching the conference and reading the bill) that there are no people in the Central Bank today who understand anything about cryptocurrencies. This is confirmed by theses about anonymity of transactions and impossibility to trace cryptocurrency transfers, while exactly on cryptocurrency exchanges the best bank-level compliance procedures are implemented. I think that, as always, Vladimir Putin will have the final word. But since we have already heard his point of view, I think the Finance Ministry will win.

“The ban is contrary to respect for the interests of citizens and businesses.”

Statement from cryptocurrency exchange Binance

For Binance, protecting the interests of cryptocurrency users is a priority. We believe that it is regulation, not a ban, that will legitimize the market, and therefore create mechanisms and opportunities for the state to protect the rights of individuals and legal entities.

The ban on the dissemination of information about cryptocurrencies and their issuance in Russia, as well as the prohibition on possession also completely contradicts the observance of the interests of citizens and businesses. We support the concept approved by the Russian government and the position of the Ministry of Finance to regulate the cryptocurrency market. Regulation will contribute to the de-tenization of the market, the prohibition will only contribute to its development.

“Inconsistent step.”

Nikita Zuborev, senior analyst at Bestchange.ru

The initiative looks like a very inconsistent step on the current agenda. While the president, the administration, and the Ministry of Finance are discussing the details of regulation and working through the taxation of this industry, the Central Bank is proposing a complete ban in contradiction to them.

On the issue of cryptocurrencies, the Central Bank has long chosen the tactics of the “bad cop,” and so far we are lucky that the government’s true motives are in regulation and taxation. How the situation will develop further is still unknown, but there is a high probability that the bill and all future prohibitive measures from the Central Bank may be on the shelf.