Russian Prime Minister Mikhail Mishustin has told the Central Bank that it is necessary to evaluate the regulation of cryptocurrencies in the country, government news agency TASS reported.
The use of cryptocurrencies, such as Bitcoin, in Russia has grown significantly since the war against Ukraine broke out. Economic and financial sanctions imposed by European and Western governments appear to be motivating the adoption of cryptocurrencies as an alternative for transferring and storing value among Russians, although many regulators also point to the possibility that digital assets are serving government officials to evade sanctions.
In the current Russian landscape, where much of its banking has been excluded from the SWIFT financial system and with a ban on trading in several of its commodities, including oil, with some major jurisdictions, Prime Minister Mikhail Mishustin has urged the Russian Central Bank to consider the importance of resolving the regulatory issues facing the oil industry. cryptocurrencies, in the country currently.
Russia is considering cryptocurrency trading
Mishustin he pointed, according to the TASS news agency, that it is necessary to integrate cryptocurrencies and digital assets into the Russian financial system. However, it indicated that the regulatory problems that exist regarding the crypto industry must be resolved jointly with the Central Bank, in order to assess the risks that the use of cryptocurrencies can generate for the monetary system.
Last week, State Duma deputy Pavel Zavalny revealed that Russia is even open to the possibility of trading in cryptocurrencies such as Bitcoin.
On the other hand, the Central Bank of Russia announced its stance against cryptocurrencies in January of this year, recommending the country's government prohibit trade and investment activity related to cryptoassets to ensure the stability of its financial system.
Emphasis on regulating cryptocurrency mining
In his remarks, the Russian prime minister also emphasized the need to encourage crypto mining, indicating that it is an activity that must be addressed soon in the country. At the end of January, the current president of Russia called on his government agencies not to forget the competitive advantages that the country has in stimulating cryptocurrency mining, although all this was before starting his war against Ukraine.
In this regard, Russia's deputy energy minister recently indicated that it would be more efficient for the country to identify mining locations and unlock energy capacity at the regional level, rather than at the federal level.
The Central Bank of Russia, the entity in charge of protecting the country's financial and monetary stability, fears the risks posed by cryptocurrencies due to their volatility. In its report “Cryptocurrencies: Trends, Risks and Measures”, recommended banning the use of cryptocurrencies and stablecoins as a means of payment and exchange of value, as well as the issuance, circulation and investment in cryptocurrencies within Russian territory.
However, in the middle of the month, the Central Bank issued a license to authorize Sberbank, the country's largest commercial bank, to trade digital financial assets.
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