The Central Bank of Russia supports the creation of digital financial assets, but it remains opposed to legalizing crypto payment, its top management has stated. The monetary authority has begun to work on a set regulatory proposals that will be presented to parliament by the end the year.
Russia’s Central Bank Takes Legislative Initiative in Digital Assets Regulation
The Central Bank of the Russian Federation intends to file a legislative bundle concerning the regulation of financial assets digital (DFAs), with the State Duma. This lower house of parliament is called the State Duma. According to Russian law, DFA refers only to coins and tokens issued by an issuing entity. This is in contrast to cryptocurrencies such as bitcoin.
Speaking during Finopolis, a forum devoted to financial innovations, the bank’s Deputy Chairman Olga Skorobogatova explained that the proposals pursue three main objectives — improving taxation and eliminating tax arbitrage, developing exchange platforms and regulating smart contracts.
CBR’s executive highlighted Russia’s strong interest in DFA development. “We believe that this is a very good new tool for financial market participants,” she said, quoted by the crypto news outlet Forklog.
Skorobogatova said that nine applications were being reviewed by the monetary authority to be granted a license to issue or circulate digital financial assets. Three “information system operators” – Sberbank, Atomyze and Lighthouse – have been already authorized to do that, she noted.
Bank of Russia Resists Legalization of Cryptocurrency Settlements
Elvira Nabinullina, CBR Governor, said that while Russia supports the development of digital assets, it opposes the use of private cryptocurrency in settlements. Tass news agency quoted her as saying that digital financial assets do not only include crypto.
We have not changed the fact that private cryptocurrencies, for whom it is not clear who or how is responsible, are opaque and carry high volatility risks, should not be used as settlements.
Since over a decade, discussions on the status and regulation of the Russian crypto market have been ongoing. The CBR has been a firm believer in hardline stances and proposed a blanket ban of related activities, such as trading and mining, in January.
However, sanctions imposed on Ukraine’s war, including restrictions that affect international payments, have weakened its position. In September, the monetary authorities and the finance ministry reached an agreement that Russia could not make cross-border cryptocurrency settlements under current conditions.
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Bank of Russia CBR, Central Bank Crypto, Cryptocurrencies Cryptocurrency, DFA DFAs Digital Assets, digital financial asset, Initiatives, Legislation Proposals Regulation, Regulations, russian Smart Contracts Tax, Taxation
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Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
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