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The report of the Central Bank caused protracted discussions about the regulation of the cryptocurrency industry in the Russian Federation. Analysts from various fields suggested that the statements of the Central Bank could cause a complete ban on the industry, so they rushed to intervene.
The Ministry of Finance also joined the development of new laws that could regulate cryptocurrency, which caused even more controversy. After that, Vladimir Putin intervened, calling for a common opinion, leaving empty discussions.
Possible compromise between the Ministry of Finance and the Central Bank
The fact is that even if the bans proposed by the Central Bank come into force, the cryptocurrency industry will continue to develop at the same pace. Nevertheless, the discussion may play into the hands of crypto enthusiasts, since the extreme bans are no longer seen as the only option.
The main issue remains the possibility of Russian citizens and companies buying and mining new coins abroad, while remaining on the territory of the Russian state. Moreover, Russia has an excess of cheap energy in some regions, is it really worth giving up the opportunity to earn on it with the help of mining?
Well, the desired consensus could resolve these issues. The alternative proposed by the Ministry of Finance assumes that each of the market participants will receive identification. But it will not be so easy for crypto users who are oriented towards anonymity to bring all their personal data on silver platters, and with them information on transactions and savings. It is almost impossible to force ordinary retailers and single miners to do this.
But still, the ban on mining at the suggestion of the Central Bank also cannot be implemented. Earlier, the president directly drew attention to the technical possibilities of mining in Russia, and mining itself is hardly such a fundamental point for the Central Bank, which should primarily care about the stability of the financial market and consumer protection.
Also, a likely step towards regulating the crypto market will probably be the easing of regulators in relation to stablecoins. Since the developers of most of them indicate that their coins are pegged to fiat currencies. Stables, as it seems to the government, do not carry as many risks for the financial situation in the country as ordinary digital assets – the whole point is their low volatility.
But even if the Central Bank and the Ministry of Finance come to an agreement on certain points, a consensus is hardly possible on the key issue for the Russian authorities – to try to develop cryptocurrencies in Russia or not. This issue is of significant political and economic importance and cannot be resolved in the course of an interdepartmental discussion. Here we need a high-ranking moderator who listened to the arguments of the parties, who will be able to propose a draft final decision, which will most likely be made by the president.
Posted by Newt Salamander, Analyst at Freedman Сlub Crypto News
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