Russian Central Bank, Ministry of Finance to Settle Crypto Policy Differences

The Ministry of Finance in Russia is looking to resolve its differences with the Central Bank regarding the country’s cryptocurrency policies. Finance Minister Anton Siluanov expressed confidence that an agreement could be reached soon. The ministry has been pushing for regulations and taxation of crypto exchanges and traders, while the Central Bank has previously advocated for a ban on all crypto-related activities. In early 2022, the ministry introduced a draft bill on crypto regulation, which was countered by a rival bill from the bank proposing a ban. Both bills failed to progress, leaving the crypto sector in limbo. However, the ongoing war in Ukraine and sanctions imposed by the West have seemingly influenced the Central Bank to soften its stance on industrial crypto mining and consider concessions on the use of crypto for international trade settlements. Siluanov believes that there is potential for collaboration with the bank on exploring options for using cryptocurrencies in domestic and international settlements. While discussions on mining are expected, the Central Bank’s Governor Elvira Nabiullina has previously opposed the integration of crypto into the Russian economy. Siluanov hinted at the possibility of a state-owned crypto exchange that can facilitate overseas payments using tokens mined by Russian miners. Legalizing the crypto mining industry in Russia could potentially bring significant tax revenue and investment opportunities. Miners have expressed frustration with the current quasi-legal status of mining and the proposed increase in electricity tariffs.