Crypto Regulation in Russia is Still an Unresolved Matter 

Russian government officials failed to reach consensus Tuesday (Feb. 15) on how to regulate cryptocurrencies, sources told Bloomberg. 

This is despite a request by President Vladimir Putin for them to find a compromise. 

Elvira Nabiullina, the Russian Central Bank governor, Finance Minister Anton Siluanov and Deputy Prime Minister Dmitry Grigorenko were unable to get any closer to a deal that would end the stalemate. 

Instead, the trio plan to formalize their disagreements, the unnamed sources said. 

In January, Putin called for swift action on regulating crypto assets. The finance minister and the central bank were expected to release a draft law by Friday (Feb. 18). However, little progress has been made.  

Last month, the central bank comparing digital coins to a pyramid scheme, has called for an outright ban on cryptocurrency. 

See also: Russia’s Central Bank Proposes Banning Crypto 

The bank said financial institutions should be blocked from carrying out operations using crypto and called for a ban on crypto exchanges. The bank noted that Russians are active crypto users, transacting around $5 billion per year. 

The move was seen as the latest effort in a worldwide crackdown on cryptocurrency as many governments express concerns that digital currencies would disrupt their financial systems. 

“The best solution is to introduce a ban on cryptocurrency mining in Russia,” the bank said. 

But the ministry’s position contrasts with Russia’s central bank. Siluanov has argued banks can provide cryptocurrency exchange services, while other types of businesses can be licensed. Unlicensed businesses offering crypto services would be subject to criminal prosecution. 

Read more: Russian Finance Minister Eyes Legalizing Crypto Trading Through Banks 

If Siluanov’s position is adopted, Russian digital coin owners will be free to make transactions through Russian banks and pay taxes under government regulations. 

Today, while Russia acknowledges crypto assets, digital currency cannot be used as payment. The government has estimated Russians own about 2 trillion rubles ($26 billion) in crypto.