Russia’s Financial sector divided on Crypto’s future

According to a report by a Russian Media outlet, RBU, the country’s Ministry of Finance is proposing a modality that will allow crypto transactions to be done through traditional financial institutions. The proposal includes more robust customer identification protocols to accompany regulated virtual currency transactions in the country.

Earlier reports indicated that Russia looked to completely ban cryptocurrency from the country. Aside from being labeled as a pyramid scheme, banks stated that digital assets posed a threat to financial security and sovereign monetary policy.

The Bank of Russia also mentioned that crypto mining would go against the country’s green agenda as it is an energy-intensive activity. However, despite this, crypto mining activities thrive in Russia, as it is the 3rd largest mining hub after the US and Kazahkstan.

Ivan Chebeskov, Director of the Department of Financial Policy, has stated that the country should try harder to adopt crypto with its regulations. He mentions that the Ministry of Finance has prepared a regulatory framework and has submitted this to the government.

“Here it is necessary to give an opportunity to develop these technologies (mining, etc.). In this regard, the Ministry of Finance is actively involved in the development of legislative initiatives in terms of regulating this market,” said Chebeskov.

While the country’s central bank continues to stand against crypto, President Vladimir Putin has offered some endorsement to the industry, especially in the mining sector. According to Bloomberg, Putin is keen on regulating crypto mining to utilize the country’s excess power supply.

Source: CryptoPotato