Deputy Finance Minister Alexei Moiseev said that the ban on cryptocurrencies and mining could slow down the development of new technologies and services, lead to the outflow of highly qualified specialists abroad, and the loss of tax revenues.
Mr. Moiseev recalled that the relevance of cryptocurrency regulation is due to the growing popularity of citizens' investments in such assets.
"We need to create clear and transparent rules for the participation of citizens and businesses in the financial instruments of the crypto market. The concept provides for the traceability of cash flows and crypto transactions, as well as the identification of users," the official stressed.
He added that the only legal participant in the crypto market will be banks and exchanges that will oblige to comply with all the requirements of anti-money laundering legislation.
"As for investors, they will be divided into qualified and unskilled, that is, those who do not have the necessary knowledge in working with digital financial instruments," he recalled.
According to him, clear regulation excludes the possibility of a parallel financial system appearing in Russia, introduces clear rules of the game for market participants, and creates tools to protect investors' rights. In the case of a ban, all of them could automatically become violators of the law, and these are millions of people.
Last week, the Bank of Russia stressed that it was in favor of reducing the interest of Russians in the cryptocurrency market. Elvira Nabiullina, head of the regulator, noted that the concept of regulating digital assets, which was proposed by the Ministry of Finance and approved by the government, does not allow to mitigate the risks, which the Central Bank warned about.
In January, the Bank of Russia published a report "Cryptocurrencies: Trends, risks, measures", in which, in order to reduce threats, it proposed to ban the issuance, mining and circulation of cryptocurrencies in Russia. The central bank proposed to introduce a ban on the organization of the issuance or circulation of cryptocurrencies on the territory of Russia, to establish responsibility for its violation.
The concept of the Ministry of Finance provides for the regulation of cryptocurrencies in Russia without their prohibition. The Ministry believes that the complete absence of regulation or prohibition of cryptocurrencies will destabilize the industry, increasing the share of the shadow economy and the growth of fraud, and law enforcement will not be able to effectively respond to crimes using such instruments.
At the end of January, Russian President Vladimir Putin called on the government and the Central Bank to come to a consensus on the regulation of cryptocurrencies and report on the results. So, by February 18, the Ministry of Finance, together with the Bank of Russia, should prepare a bill on the regulation of cryptocurrencies.
