The Central Bank of Russia supports the development of digital financial assets but remains opposed to the legalization of crypto payments, its top management has reiterated. The Monetary Authority is currently working on a series of regulatory proposals that will be presented to parliament later this year.
Central Bank of Russia Takes Legislative Initiative in Digital Asset Regulation
The Central Bank of the Russian Federation (CBR) intends to submit a legislative package related to the regulation of digital financial assets (DFA) with the State Duma, the lower house of parliament. Under current Russian law, the term DFA refers to coins and tokens with an issuer as opposed to cryptocurrencies like bitcoin.
Speaking at Finopolis, a forum for financial innovations, the bank’s Vice President Olga Skorobogatova explained that the proposals pursue three main goals – tax improvement and tax disparity, and platform development. smart contract regulatory and exchange platform.
CBR CEO emphasized strong interest in the development of DFA in Russia. “We believe this is a very good new tool for financial market participants,” she said, quoted by crypto news site Forklog.
Skorobogatova revealed that the monetary authority is currently reviewing nine applications from companies seeking to obtain a license to issue and circulate digital financial assets. Three “information systems operators” – Sberbank, Atomyze and Lighthouse – have been authorized to do so, she noted.
Central Bank of Russia opposes legalization of crypto payments
Meanwhile, speaking in the Duma, CBR Governor Elvira Nabiullina stated that while the Central Bank of Russia supports the development of digital financial assets, the private use of cryptocurrencies in jurisdictions settle against. As quoted by Tass news agency, she also emphasized that digital financial assets are not limited to cryptocurrencies and emphasized:
We have not changed our position that private cryptocurrencies, unclear who and how are responsible, unclear and high risk of volatility, should not be used in settlements.
Discussions on the state of cryptocurrencies and the regulation of the crypto market in Russia have been going on for more than a year. The CBR has traditionally maintained a hardline stance, proposing a comprehensive ban on related activities such as mining and trading in January.
However, sanctions over the war in Ukraine, including restrictions affecting international payments, have softened the country’s position. In September, the currency regulator agreed with the finance ministry that under current conditions, Russia would not be able to do without cryptocurrency cross-border settlements.
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