Russian government abandons plan to ban crypto, introduces roadmap for regulation

The central bank of Russia has abandoned plans to ban cryptocurrency. The Russian government is preparing a roadmap for cryptocurrency regulation. 

Russia prepares to embrace crypto regulation

The Russian government revealed its preparation to introduce a roadmap for cryptocurrency adoption. Dmitry Chernyshenko, Deputy Prime Minister of Russia, has approved the roadmap for cryptocurrencies. It provides for regulating cryptocurrencies instead of a ban and identifying clients, violations, and cryptocurrency platforms. 

Regulators and federal agencies in Russia were part of the roadmap’s preparation. The Ministry of Finance, Economic Development, Internal Affairs and the Ministry of Digital Development were involved in the preparation of the roadmap for cryptocurrency regulation alongside the Central Bank of Russia. 

The regulators that participated in the development of the roadmap believe that the infrastructure of the cryptocurrency market contains both advantages and risks. The Russian government considers it key to implement the concept of a regulatory regime rather than a shadow ban on cryptocurrencies. 

By May 2022, the Russian government expects to work on the attributes and functionality of a compliance control system. By November, the Financial Action Task Force for Money Laundering (FATF) would offer a system of regulatory measures. 

The Russian ministry of finance is keen on regulating crypto. The central bank of Russia proposed the initial ban on crypto. The Central bank concluded its report with the following:

The Bank of Russia has repeatedly noted high risks to the stability and the stability of a high-risk financial system of the Russian Federation associated with the circulation and the use of cryptocurrency.