Russia Set to Propose Regulatory Plans for Crypto This Week

Russian flag, cryptocurrency

The Russian government is expected to unveil ways to regulate cryptocurrency by Friday (Feb. 11), according to report citing a Russian newspaper.

Kommersant quoted documents from a meeting held at the House of the Government of the Russian Federation in Moscow one week ago.

Also, last week, Russia’s Minister of Finance Anton Siluanov said cryptocurrency should be regulated rather than banned in Russia. He suggested crypto trading should be legalized through the nation’s banks.

See also: Russian Finance Minister Eyes Legalizing Crypto Trading Through Banks

But the ministry’s position is in contrast to Russia’s central bank, which has proposed banning crypto. Siluanov argues 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.

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.

One month ago, the Bank of Russia reiterated its position on crypto. The country’s central bank said every private digital currency transaction hould be conducted outside the country.

But the Finance Ministry has argued authorities should differentiate between “white” and “black” crypto market activities.

Each side does agree that cryptocurrencies should not be approved for legal tender.

Siluanov has insisted Russians have 12 million crypto wallets with coins worth around 2 trillion rubles ($26.5 billion).

But other sources have reported the Russians own $215 billion in cryptocurrency.

Last month, Binance, the largest cryptocurrency exchange in the world in terms of daily trading volume, said it wants to expand its cryptocurrency exchange in Russia. The company said Russia is of strategic importance.

See more: Binance Looks For Larger Footprint in Russia

The company recently named three new executives to positions in Russia and the Ukraine in hopes of strengthening its position in those nations.