- it objects to a number of ideas of the department and finds them risky, follows from a comment provided by the regulator to the TASS agency .
- the Central Bank advocates a ban on the use of Russian infrastructure for cryptocurrency transactions.
- “Legalization and regulation will create the illusion of protection and rules for people, reassuring them that if the state allows, then there are no risks”.
The Central Bank of Russia submitted objections to the concept of the Ministry of Finance on cryptocurrencies.
The Central Bank of Russia got acquainted with the concept of the Ministry of Finance on the regulation of cryptocurrencies, however, it objects to a number of ideas of the department and finds them risky, follows from a comment provided by the regulator to the TASS agency . The options proposed by the Ministry of Finance involve market regulation, while the Central Bank advocates a ban on the use of Russian infrastructure for cryptocurrency transactions.
The Bank of Russia sees a serious threat in the admission of cryptocurrencies to the Russian financial system proposed by the ministry. “Legalization and regulation will create the illusion of protection and rules for people, reassuring them that if the state allows, then there are no risks. As a result, this market will become more and more massive until the bubble bursts. And in this case, the state will already face huge social risks and financial stability risks,” the regulator said.
The way of regulation, in which only qualified investors will be allowed to make transactions with cryptocurrencies, is also critically assessed by the Central Bank. It is impossible to limit risks in this way, they believe. “The concept of selecting qualified investors assumes that they make transactions with complex, risky financial assets, but assets where the issuer is known, and it is possible to assess the risks, having mastered a sufficient amount of financial knowledge. The cryptocurrency exchange rate is determined mainly by speculative factors, so financial literacy will not help the investor avoid risks,” the Central Bank noted.
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CENTRAL BANK ADVOCATES THE BAN
- the Central Bank advocated a complete ban on transactions with cryptocurrencies
- Russian President Vladimir Putin does not support a complete ban.
- he assesses the introduction of regulation and taxation.
The report, in which the Central Bank advocated a complete ban on transactions with cryptocurrencies in the country, was released on January 20. The Ministry of Finance, according to data published by RBC, offers its own solution: crypto-operations will be carried out through Russian banks, the participants in the transaction will be identified, and customers will be divided into qualified and unqualified investors.
In the cover letter to the concept, the Ministry of Finance also proposes to define the key parameters for the implementation of cryptocurrency mining, while the Central Bank proposed to ban mining. According to Bloomberg sources, Russian President Vladimir Putin does not support a complete ban. More reasonable, he assesses the introduction of regulation and taxation of this activity in some regions.
