Russian Industry and Trade Minister Denis Manturov says bitcoin and other currencies will be legalized as payments over time.

In his explanation of how legalization will happen, the minister explained that it all depends on the way it will be regulated and passed. In recent months, Russian regulatory agencies have avoided being drawn into discussions about legalization and banning.

Manturov responded to a question at a New Horizon educational event on the legalization of bitcoin and other cryptocurrencies.

“The question is when it will happen, how it will happen, and how it will be regulated. Now both the Central Bank and the government are actively engaged in this.”

Until recently, the Russian Central Bank (CBR) and the Ministry of Finance had held polar opposite views on cryptocurrency regulation, with the CBR looking for a ban, while the ministry wanted taxation regulation.

According to the CBR, local crypto trading and mining were recently proposed to be banned because of “financial stability risks” caused by the sector.

The Ministry of Finance, on the other hand, has supported cryptocurrencies, and President Vladimir Putin has also held talks with regulatory agencies to come to a settlement given Russia's natural resources advantage.

However, CBR has acknowledged that the sector's stagnant growth may be a direct result of its aggressive stance toward crypto following the ongoing invasion of Ukraine. 

Governor Elvira Nabiullina explained that economic sanctions put on the country helped change its sentiments regarding cryptocurrency, and it now wants to create a meaningful local market for digital assets.

Pavan A

CBW - External Analyst

INDIA