Finance Ministry reveals stance on proposed Russian bitcoin ban

Last week, the Bank of Russia suggested that cryptocurrency transactions be prohibited

The Russian Finance Ministry has rejected proposals from the Bank of Russia to impose a complete ban on cryptocurrency and has instead suggested introducing regulation that would allow the government to have more robust control over transactions.

That’s according to Moscow daily RBK, citing a letter sent by the government body to Deputy Prime Minister Dmitry Chernyshenko, which pointed out that it is impossible to completely ban cryptocurrency transactions.

“By establishing the rules of circulation and providing for control measures, it is possible to minimize the threat to the stability of the financial system and reduce the use of cryptocurrencies for illegal purposes,” the document says, according to the newspaper.

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Last week, the country’s central bank proposed a complete ban on cryptocurrencies in Russia. The regulator said that their issuance, circulation, exchange, and trade should be prohibited in order to prevent them from being used for crime, such as fraud and money laundering. In contrast, the Ministry of Finance believes that digital money should be regulated, which will lead to an increase in budget revenues through taxes and insurance premiums.

The concept proposed by the ministry would allow cryptocurrency transactions to be conducted officially through banks, essentially making it completely legal but monitored.

Earlier this week, two MPs claimed that the Bank of Russia’s proposed ban was not supported by some representatives of the country’s authorities, including parliament, the police, and the Federal Security Service (FSB). Speaking to online outlet Lenta, they explained their view that prohibition would simply fail and could “turn Russia into a laughing stock for the whole world.”