The Ministry for Economic Development in Russia has taken a stand against a proposed blanket ban that could see harsh penalties on crypto users. Earlier, the State Duma made public a new draft law on the use of crypto. If passed, it could have a significant effect on Russia’s crypto industry. The draft law recommends harsh penalties and jail terms for dealing in the cryptocurrency. However, the economy ministry believes banning crypto will not stop the use of crypto.
Russian economy ministry asks for regulating the crypto industry.
The Russian economy ministry believes that even if the bill is passed, it will do little to stop the use of cryptocurrencies in the country. In a letter to the State Duma, the economy ministry said the users will still access crypto on platforms that the Russian government has no jurisdiction over. This will render the government’s protective measures null and void. Instead of a blanket ban, the economy ministry urged in the letter to regulate the crypto industry. Cryptocurrency by nature can not be banned in any part of the world as they are decentralized, and people will always have access to them, which would create an uncontrolled market.
The Bank of Russia should oversee the crypto regulations.
According to the local news outlet Kommersant, the economy ministry advocates for the government to establish guidelines for both the users and the issuers. It also suggested that the central bank of Russia should oversee the enforcement of the crypto industry regulations. The head of the State Duma’s financial markets committee, Anatoly Aksakov, had made similar statements about the crypto industry. However, the central bank of Russia has opposing views about the crypto industry. The Bank of Russia executive had earlier said that they would support any law that would prohibit the use of crypto in the country. The Russian President Vladimir Putin had said that it is not possible for a country to have its own cryptocurrency as they operate beyond borders and can not be controlled by one authority.
