Bank of Russia aims to regulate digital asset taxation, exchange, still opposed to crypto – regulation Bitcoin News

The Russian central bank supports the development of digital financial assets, but remains opposed to legalizing crypto payments, top management has reiterated. The Norwegian Monetary Authority is now working on a set of regulatory proposals to be submitted to parliament by the end of the year.

Russia’s central bank takes legislative initiatives in the regulation of digital assets

The Central Bank of the Russian Federation (CBR) intends to submit a legislative package on the regulation of digital financial assets (DFA) to the State Duma, the lower house of parliament. Under current Russian law, the term DFA refers to coins and tokens with an issuing entity as opposed to cryptocurrencies such as bitcoin.

Speaking at Finopolis, a forum devoted to financial innovations, the bank’s deputy chairman Olga Skorobogatova explained that the proposals pursue three main goals – to improve taxation and eliminate tax arbitrage, develop exchange platforms and regulate smart contracts.

The CBR leader highlighted the strong interest in the development of DFAs in Russia. “We believe that this is a very good new tool for financial market participants,” she said, as quoted by crypto news outlet Forklog.

Skorobogatova revealed that the monetary authority is currently reviewing nine applications from companies seeking to obtain a license to issue and circulate digital financial assets. Three “information system operators” – Sberbank, Atomyze and Lighthouse – have already received permission to do so, she noted.

Bank of Russia maintains opposition to legalization of cryptocurrency settlements

Meanwhile, CBR Governor Elvira Nabiullina stated in the Duma that while the Bank of Russia supports the development of digital financial assets, it is against the use of private cryptocurrencies in settlements. Quoted by the Tass news agency, she also insisted that digital financial assets are not limited to crypto alone, stressing:

We have not changed our position that private cryptocurrencies, for which it is not clear who and how is responsible, which are opaque and have a high risk of volatility, should not be used in settlements.

Discussions about the status of cryptocurrencies and regulation of the crypto market in Russia have been going on for over a year. The CBR has traditionally maintained a hard line, proposing a general ban on related activities such as mining and trading in January.

However, sanctions over the war in Ukraine, including restrictions affecting international payments, have softened the position. In September, the monetary authority agreed with the Ministry of Finance that under current conditions it would be impossible for Russia to manage without cross-border settlements in cryptocurrency.

Do you think the Bank of Russia might change its stance on domestic crypto payments? Share your thoughts on the topic in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be 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.