Russia to decide between blanket crypto ban and legalizing exchanges in 2022

There were conflicting reports in Russia Thursday about the state of crypto regulatory affairs. First, Reuters reported that the Central Bank of Russia wanted to ban cryptocurrencies. They cited financial stability risks and an exploding number of transactions as reasons. The move, if it is enacted would be in line with statements made last month by Russian President Vladimir Putin at an investment forum held in Moscow, where he stated that cryptocurrencies “bear very high risks”. The advisory report is being prepared by the nation’s central banks.

Anatoly Aksakov (chairman of the Duma [Russian Parliament] Committee on Financial Markets) made the following statement at a press conference that day. This was reported by interfax.ru, and translated by Cointelegraph.

One approach to the total ban on cryptocurrencies is very strict. This includes ownership and acquisition. Another approach is to have appropriate crypto exchanges. This would allow everything to be legalized, transparent, and easily understood by regulatory bodies. The Federal Tax Service of Russia would find it easier to tax these [exchange] transactions.

Chairman Aksakov supported cryptocurrency mining regulation in the nation, citing factors like mining taxation as well as business electricity consumption. The country’s authorities have made it a priority to launch a CBDC ruble. They also have toughened their stance against the private crypto industry, banning mutual funds from investing Bitcoin (BTC) and enforcing strict sanctions on it. Recent figures show that Russians invest approximately $5 billion annually in cryptocurrency.