Russian Ministry Of Finance And Central Bank Are Debating About Crypto Money, Putin Will Decide!

The Russian Ministry of Finance does not want to ban the circulation of cryptocurrencies. (photo: doc. unsplash)

JAKARTA – The Russian Ministry of Finance has stated that it does not want to ban the circulation of cryptocurrencies as recommended by the central bank. On the other hand, Finance Minister Anton Siluanov, on Wednesday, February 16, hoped that the Russian government would help solve the crypto market regulatory dilemma.

Previously, the Bank of Russia had proposed restrictions on trading and mining of cryptocurrencies due to concerns it could lead to financial instability. But the Finance Ministry disagreed and President Vladimir Putin also called on the authorities to find a consensus.

According to Siluanov, the Ministry of Finance and the Russian Central Bank have been arguing about cryptocurrency regulation for a year and a half, adding that the government is now expected to find a solution.

"We will go to our superiors with this dispute to try to resolve the dispute," Siluanov told the media.

Reuters reported that by the end of this week, the finance ministry will submit a proposal to the government on how to regulate the cryptocurrency, which Russia has used in annual transactions worth around $5 billion.

"If we ban cryptocurrencies, then we need to ban the internet. We don't use the methods that China uses," Siluanov said.

The Bank of Russia previously said that the country needed further adjustment of cryptocurrency regulations, citing the experiences of China and India.

In September of last year, China intensified its crackdown on cryptocurrencies with a complete ban on all crypto transactions and “mining”, which eventually hit bitcoin and other major coins and put pressure on crypto and blockchain-related stocks.

Siluanov said his ministry believes mining should not be banned but legalized and taxed. While banks and stock exchanges should be used to identify players in the cryptocurrency market.

Separately on Wednesday, Valeriy Lyakh, Head of the Department of the Central Bank of Russia stated to counter market abuses, he reiterated his institutional stance that cryptocurrencies carry risks for consumers of financial services.

“We do not consider it feasible to bring cryptocurrencies into the regulatory sphere,” said Lyakh.

Fitch Ratings has warned that a cryptocurrency ban would limit the risk exposure of Russia's financial system, but could curb innovation and hinder the bank's technological development in the long term.