Russia is studying banking proposals to legalize cryptocurrencies
Russia's Finance Ministry has said it is studying proposals made by the central bank on cryptocurrencies and will take them into account as long as they do not conflict with its own approach, a prelude to legislation governing crypto assets.
A dispute raged in Russia over the regulation of the cryptocurrency market, when the Ministry of Finance submitted proposals for legislation to the government that clashed with the central bank's demand for a blanket ban on cryptocurrency trading.
The Bank of Russia has proposed banning cryptocurrency trading and mining operations due to the threat cryptocurrency poses to financial stability.
But the Ministry of Finance has introduced legislation regulating cryptocurrencies, allowing them as an investment tool, but not as a means of payment.
Today, Monday, the Ministry of Finance said that the Ministry of Finance draft law aims to create a legal market for digital currencies.
The proposals include regulating foreign cryptocurrency exchanges that are required to obtain a license in Russia, and introducing financial literacy tests that determine how much individuals are allowed to invest in.
The Finance Ministry said that citizens who successfully pass the tests will be allowed to invest up to 600,000 rubles ($7,853) in cryptocurrencies each year.
And that those who fail will have an investment limit set at 50,000 rubles per year.
The central bank is also opposed to cryptocurrency mining, where powerful computers compete with others connected to a global network to solve the complex mathematical equations needed to mine cryptocurrencies.
The bank has warned about the inefficiency of energy consumption and the environmental impact of mining, while the Ministry of Finance prefers to allow mining under a tax basis.
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