(Bloomberg) -- Russia’s Finance Ministry published draft legislation to regulate operations using cryptocurrencies, putting it at odds with the central bank’s resistance to allowing their exchange into rubles and other currencies.
Licensed operators would be able to validate conversion of cryptocurrencies into other digital instruments as well as rubles or foreign currencies, according to the bill. Digital assets themselves wouldn’t be deemed as legal means of payment in Russia, while the proposals also set out measures for domestic regulation of initial coin offerings.
Governments around the world are increasing scrutiny of digital currencies as soaring prices attract everyone from mom-and-pop investors to Wall Street banks. The Russian bill emerged after months of discussion between the country’s financial authorities, with central bank officials expressing skepticism over the use of cryptocurrencies.
The International Monetary Fund, the U.S. Treasury, France and Germany are all pushing for greater coordination and regulation of digital currencies at the Group of 20 nations level, as their sharp volatility, soaring value and anonymity attract more investors and in some cases may be used for illicit transfers.
Being Cautious
President Vladimir Putin said this month that the central bank is right to be cautious about the increasingly popular financial instruments and that Russia shouldn’t repeat past experiences in which investors were swindled. He called for regulation of cryptocurrencies at an October meeting attended by Bank of Russia Governor Elvira Nabiullina and Finance Minister Anton Siluanov, while telling officials “not to put up too many barriers.”
The Bank of Russia opposes the exchange of cryptocurrencies into other assets and wants to allow operations for ICO tokens only, the Finance Ministry said in a statement Thursday. A legal ban on such operations would create conditions for criminal use of cryptocurrencies, while trading via licensed operators would increase tax revenues, according to the ministry.
Another law that introduces the term “money surrogates” is almost ready and will support the ruble’s status as the only legal means of payment, the ministry said.
