Putin has called for consensus among the regulators with respect to crypto technology and markets.
It seems like there is a mismatch in the vision of Russia’s monetary policy head and the executive.
Last week, Russia’s central bank called for a ban on the Crypto industry, citing macroeconomic and environmental implications.
But the Finance Ministry of the country has an antithetical stance to the Central Bank’s recommendations.
On Tuesday, Ivan Chebeskov, Head of the Financial Policy Department at the Finance Ministry, said that the ban on crypto would drag the country behind in the emerging technology.
“We need to give these technologies the opportunity to develop. In this regard, the Ministry of Finance is actively involved in the development of legislative initiatives in terms of regulating this market,” Chebeskov stressed.
He opined that regulation is the key to protecting citizens, not the ban.
Stance of Vladimir Putin on Crypto
On Wednesday, Russia’s President, Vladimir Putin asked for a consensus between the positions of the Central Bank and the Government of Russia and hold this discussion in future.
“The central bank has its own position. It is connected with the fact that the expansion of this type of activity carries certain risks, and first of all for the citizens of the country, given the high volatility and some other components of this topic.”Vladimir Putin, President of Russia
Putin hailed Russia’s competitive advantage in crypto mining, surplus electricity and the skilled personnel available in the country. Considering both the risks and benefits, he urged the regulators to have a unanimous decision.
According to a Bloomberg report from Thursday that cited anonymous sources, Putin is backing a Government proposal to tax and regulate mining of cryptocurrencies. The proposal plans to restrict crypto mining in electricity surplus regions of the country, such as Irkutsk, Krasnoyarsk and Karelia.
Russia is the 3rd largest contributor to the Bitcoin network. Its policy will have a significant impact on the industry. Moreover, it is the 9th largest country in terms of population, as per World Bank’s data. So, a huge player is contemplating crypto regulations.
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