Central Bank Offers Support to Miners, But Bucks Crypto Trading in Russia

Central Bank Offers Support to Miners, But Bucks Crypto Trading in Russia

Things are heating up around Russia’s crypto regulatory plot. After the announcement that the country’s largest lender Sberbank has intentions to trade cyber-coins abroad, another one came out. This time, Russian Central Bank claimed that it is looking forward to mining within state’s borders, although it is not ready to support the adoption of cyber money in the region of Russia, e.g., cashing it out.

Central Bank Supportive, But Not The Whole Way

According to Russian media outlet RBC, amid the regulatory discussions over cryptos in the state, the Central Bank offered to permit the production of digital money. Specifically, Olga Skorobogatova, the First Deputy Head of the Bank said:

"We offer to allow mining on the territory of the Russian Federation. For us, it is a kind of activity that can be supported.”

Albeit, the institution is against swapping of cryptos in this state.

“At the same time, the question of how the miners will exchange what they have mined is still debatable. We, as the Bank of Russia, believe that they still have to do this not on the territory of Russia," said she.

The official also emphasized that the offer of the top-bank has not been finalized and is yet to face discussions before any changes adopted for the ultimate law.

Proposals on Regulation

Among the official recommendations on the virtual assets control in Russia, there was one which called for the detection of all crypto producers in the state. In accordance with this proposal, mining would be allowed both for ordinary people and firms, and it would be taxed. The Ministry of Communications informed about its intentions to create an exclusive system for finding out all miners.

Regulators’ Nightmares

It is not the first time when Russia’s Central Bank does not speak in favor of virtual money turnover. Previously, the bank stated that the use of cryptos may lead to money laundering and will make it possible the support of shady operations. Concurrently, as the regulator emphasized, cryptos do not allow tracking the participants of the entire chain in Russian realities.

Opposite View

But it is not everyone in Russia who adheres to this view. For example, Russia’s Finance Ministry recently developed a draft law, in which it stated that people would get the opportunity to purchase and vend both crypto-coins via exchanges, brokers, etc., which will have been certified. Additionally, the department noted that the virtual assets ban could lead to the extension of the underground economy.