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Russian Finance Minister Says Crypto Should Not Be Prohibited

2 mins
Updated by Bary Rahma
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In Brief

  • Russia's Finance Minister advocates for cryptocurrency regulation, not prohibition.
  • Aim to use cryptocurrency for both domestic and international settlements.
  • Discussions on cryptocurrency mining's role in financial transactions are ongoing.
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Russia’s Finance Minister Anton Siluanov voiced a strong stance against the outright prohibition of crypto.

Highlighting the ongoing dialogue between the Ministry of Finance and the Bank of Russia, Siluanov revealed plans to delve into the practicalities of employing cryptocurrencies for domestic and international settlements.

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Siluanov’s remarks reflect a pragmatic approach toward the cryptocurrency market, emphasizing the necessity of regulation over restriction.

“I am sure that the Central Bank and we will come to an agreement. This issue has been discussed for several years. We cannot prohibit the circulation of cryptocurrencies. Therefore, we need to regulate this channel. I am sure that we will find a solution,” Siluanov stated.

The discourse around cryptocurrency mining and its potential application in settling transactions has gained traction. Both governmental bodies expressed a preliminary inclination toward leveraging cryptocurrencies for external payments. This nuanced position reflects a broader consideration of the role of cryptocurrencies within Russia’s financial system, balancing between innovation and fiscal oversight.

Indeed, the dialogue is expected to shed light on permissible activities within the cryptocurrency domain. Especially, on international financial interactions.

“We need to talk about what can and cannot be done with cryptocurrency. We have now agreed with the Central Bank to discuss the issue of mining – whether the results of this process can be used for settlements within the country and in international settlements,” Siluanov added.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

The backdrop to these discussions includes supportive remarks from Elvira Nabiullina, Head of the Bank of Russia. She previously endorsed the experimental use of cryptocurrency and mining in cross-border settlements. Siluanov’s affirmation of regulatory intentions further cements the government’s commitment to fostering a controlled yet vibrant cryptocurrency sector.

The economic implications of such regulatory advancements are substantial. With miners poised to generate liquidity for foreign trade settlements upwards of $2.59 billion, there is a vast potential for enhanced tax revenues from industrial mining. Indeed, Sergei Bezdelov, Director of the Industrial Mining Association, highlighted the fiscal benefits of a regulated crypto framework.

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Bary Rahma
Bary Rahman, a talented journalist, graduated from New York University with a degree in Journalism. Skilled in SEO, she has worked with CNN, showcasing her investigative skills and storytelling abilities. In addition to her journalistic accomplishments, Bary has contributed her expertise as a content writer for Binance, crafting insightful articles on the dynamic crypto industry. Her unique fusion of journalism and SEO makes her a versatile and highly respected figure in the industry.
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