February 25, 2024

Today, the Ministry of Finance made an announcement clarifying certain aspects of its proposal to regulate the crypto market. The body stated that lending of cryptocurrency will not be allowed by the Russian government. Also, according to the regulatory body, not all coins will be made available to investors.

Recently, the Russian government ruled in favor of the Finance Ministry. This was concerning the legalization of cryptocurrency in the country, and the government approved the ministry’s proposal. 

The Russian government decided it was better to have regulations than to ban cryptos completely. This decision was made after the government looked at the monetary benefits from regulation compared to a total ban. 

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Russian Government Will Not Allow All Cryptocurrencies In The Country

The Finance Ministry has emphasized that users can not use digital currencies as collateral or loan them out.

Furthermore, cryptocurrencies and crypto firms that will be allowed to operate in the country are to inform the citizens about the risks associated with using cryptocurrency. This is to protect the public’s interest and ensure that those who get involved know what they are up for.

Tass News reported that strict restrictions would be imposed on the advertisement of cryptos and its related services. 

The Finance Department proposed that regulatory officials limit the number of cryptos that can be traded. This proposal is to protect investors from fraudulent coins. Crypto exchange firms do not always verify cryptocurrency projects before enlisting them on their platform, thus paving the way for fraudulent activities. As stated by the ministry, “only established and matured cryptos” should be permitted in the country. 

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Non-Residents Can Buy Crypto And Withdraw Funds

From the proposal, non-residents can buy cryptos from domestic and foreign digital asset firms as long as they are registered with the government and have an office in the country. However, all withdrawals by these investors must be made through local banks authorized by the authorities. 

The government is currently working on a comprehensive regulation of the crypto market. The proposal of the Bank of Russia to implement a blanket ban was met with disapproval from government institutions. Instead, they fought for cryptocurrencies to be regulated.

The Central Bank of Russia and the finance department are to prepare a proposed bill citing the regulatory plans approved by the government by the 18th of February. The legislature at the State Duma will enact the new law in their lower house of parliament during spring. 

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With the proposal from the finance ministry, the top ten cryptos are bound to be approved. Still, the institution is yet to release a list of the supported coins but may do so in the following weeks.

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