The ongoing disputes between the Russian Ministry of Finance and the nation’s Central Bank regarding crypto regulation have been a major point of contention. While the Ministry of Finance seeks to regulate and tax crypto exchanges and traders, the Central Bank has advocated for a ban on all crypto-related activities. This clash has stalled progress and left the crypto sector in limbo, causing the nation’s FATF compliance rating to be downgraded.
Despite their differences, there have been recent indications that the Central Bank is willing to soften its stance on industrial crypto mining, which is thriving in Russia. The bank has also shown some flexibility on the use of crypto in international trade, signaling a potential area for agreement between the two parties. Finance Minister Anton Siluanov has expressed the need to explore options for using cryptocurrencies for settlements both domestically and internationally.
Potential Legislation on Crypto Mining
Siluanov mentioned that the Ministry of Finance and the Central Bank have agreed to discuss the issue of crypto mining and its potential impact on settlements. However, the bank’s Governor Elvira Nabiullina has made it clear that she is adamant about blocking crypto’s entry into the Russian economy. While there may be discussions on using mined tokens for external payments, sweeping concessions are unlikely to be made.
Russian crypto miners have highlighted the economic gains that could result from legalizing their industry, including a substantial increase in tax revenue. Industry leaders have expressed readiness to invest in new data centers, which could also bring savings in tech investments. However, the industry remains in a grey area, neither legal nor illegal, leading to frustration among miners. Additionally, proposed electricity tariff hikes have further fueled discontent within the industry.
The ongoing impasse between the Russian Ministry of Finance and the Central Bank regarding crypto regulation continues to hinder progress in the sector. While there have been some indications of potential compromises, significant differences in approach remain. It is crucial for both parties to find common ground and work towards a regulatory framework that benefits both the industry and the economy as a whole.
