Russia’s Central Bank and Government clash over the legality of crypto use

15th feb, 2022

The Russian government is keen on integrating cryptocurrencies within its financial system with a scheduled plan of releasing a draft law ahead this week on February 18.

However, the Bank of Russia holds a contrary stand and warns that the use of digital assets could flourish illegal activities.

Earlier this month, Russian Finance Minister Anton Siluanov said that legalizing crypto would help eliminate grey market crypto trading and give the government the freedom to monitor the industry.

“We need to create clear and transparent rules for the participation of citizens and businesses in the financial instruments of the crypto market. Clear regulation excludes the possibility of a parallel financial system appearing.”

The Russian government’s decision to legalize crypto has a political as well as a geopolitical angle to it. A legal crypto market would prove to be a gateway for Russia to avoid global sanctions.

Just as the Bank of Russia is concerned about the legality of crypto, the Indian central bank RBI has voiced a similar opinion. The country’s Finance Ministry is still having discussions about the legality of the asset class.

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