|

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

  • The Russian government has abandoned its plan to ban cryptocurrencies and introduced a roadmap for its adoption. 
  • The government plans to identify clients, violations and cryptocurrency platforms in Russia. 
  • The central bank of Russia believes that it is advisable to implement a regulatory and restrictive cryptocurrency regime. 

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.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

More from Ekta Mourya
Share:

Editor's Picks

Ripple correction pauses, but recovery prospects remain limited

XRP hovers above the critical $1.00 support level but faces diminishing recovery potential. Binance XRP futures Open Interest falls to $189 million, the lowest level in three months.

Crypto Today: Bitcoin, Ethereum and XRP struggle to find footing amid spot ETF outflows

Cryptocurrency prices are broadly consolidating near key lower support levels on Wednesday, led by Bitcoin, hovering around $74,000. Ethereum sits above $2,000 while its upside remains structurally capped. Ripple, meanwhile, holds delicately above $1.00.

Bitcoin at risk of sharp moves as leverage builds in derivatives markets

Bitcoin remains in a capped tone, trading around $73,800 on Wednesday after slipping to a low of $72,727 following the previous day’s hot US inflation figures. Institutional demand continues to weaken, with BTC spot ETFs recording a $95 million outflow on Tuesday, marking the fourth straight day of withdrawals.

Chainlink holds at $10 as Moody’s Ratings completes CCIP testnet pilot

Chainlink edges higher on Wednesday, taking a breather after the previous day’s 3% decline. Moody’s Rating completes the testnet pilot on Chainlink’s CCIP to distribute credit assessment data across multiple blockchain networks simultaneously.

Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss
Bitcoin (BTC) remains under pressure, down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss. Persistent outflows from US-listed BTC spot Exchange Traded Funds (ETFs), a sharp sell-off in US technology stocks, and rising market liquidations are weighing on sentiment and limiting Crypto King’s recovery attempts.