The central bank is ready to legalize cryptocurrency … But on one condition

Cryptocurrency news continues to make headlines. In light of inflation, some countries are turning to these assets, which they see as the currency of the future. In Russia, the government is facing several simultaneous problems. In addition, the war meborn against Ukraine is forcing him to reconsider his verdict on cryptocurrencies. Thus, the central bank is ready to accept the legalization of cryptocurrency, provided that certain rules are complied with.

While many countries have already adopted cryptocurrencies, others are wary of them and do not want to hear about them. Russia is in the second category and intends to stay there. At least until last month. In fact, the Russian government is beginning to see an opportunity to legalize cryptocurrency mining. However, the process requires that certain conditions are met if it is to succeed.

The head of the Bank of Russia’s fintech department, Kirill Pronin, stated recently. According to him, the Central Bank of Russia (CBR) is now ready to accept the legalization of cryptocurrency. But to do this, the miners are forced to sell the coins from the extraction outside the country. Governor Elvira Nabiullina shares her view. Last month, she argued that cryptocurrencies could be allowed. But on condition that they do not penetrate the Russian financial system.

It also issues another restriction. In fact, the governor believes that the high volatility of bitcoin can hurt potential investors. Because of this, she insists that it should not be traded on Russian platforms. Pronin spoke again at St. Petersburg International Legal Forum, which took place this week.

The head of the financial technology department noted that although cryptocurrency mining is not the responsibility of the Bank of Russia, it is an effective way to obtain cryptocurrencies in the form of fees. These will be used to validate cryptocurrencies made by miners.

A Russian cryptocurrency exchange platform to provide liquidity to the industry?

Members of the lower house of the Russian parliament want cryptocurrency mining to be recognized as a commercial activity using the equipment located in the country and the Russian information infrastructure. Some Russian-based mining companies face foreign restrictions when withdrawing funds. Because of this, Ivan Chebeskov, Director of the Finance Ministry’s Department of Finance, suggests that the Russian Federation should set up its own exchange infrastructure to provide liquidity to the industry.

Remember that the idea is not bad in itself when you know that Russia is in the crosshairs of the EU. Since the beginning of the war, which is against Ukraine, the Russian Federation has been subjected to several foreign sanctions. Therefore, the creation of a Russian crypto-exchange platform might allow the country to free itself from the yoke of foreign powers. As Kirill Pronin so aptly put it, it should be avoided that coins minted by miners are subsequently used in national countries.

The war between Russia and Ukraine is forcing Moscow to revise its consideration of cryptocurrencies. In fact, after banning crypto-mining and all cryptocurrency-related activities earlier this year, Russia is now considering legalizing cryptocurrency mining. However, this process is subject to conditions that miners should take into account if they want to carry out their activities.

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Eddy Senga avatar

Eddy Senga

The world is changing and adaptation is the best weapon to survive in this undulating universe. As the crypto community manager at the base, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and draw attention to a field that fascinates me, there is nothing better than writing informative and casual articles at the same time.

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