Russian Ruling Party Says Crypto Regulation Will Safeguard ‘Millions of Citizens’


United Russia, the ruling party in the country, claims that around 12% of its population uses crypto or interacts with it – and senior political figures have stated that it will protect crypto owners with its forthcoming regulations.

Anton Gorelkin was the Deputy Chairman for the State Duma’s Committee on Information Policy. Alexander Yakubovsky is a MP and member the parliamentary working group on legislative regulation of crypto. He stated that legalizing crypto could aid Russians who are under Western-led economic sanctions, perRegnum , and Kopeysky Rabochiy.

The MP said that the Ministry of Finance had submitted a bill prior to the military operation in Ukraine. However, he insists that crypto mining should be split into two distinct sectors: “Home mining” and “industrial crypto mining.”

Osman Kabaloev is the head of banking regulation at Financial Policy Department of Ministry of Finance. He said that legal definitions like “crypto mining”, and “crypto trading” would be helpful in achieving this goal.

Gorelkin stated that 12% of Russians had experienced crypto “transactions” in some form and added:

If you take out the percentages, it is millions of people. Our task is to protect them from the dangers associated with shadow circulation and fraudulent activities of cryptocurrency and their use in criminal calculations, as well as the uncertain status of the sites they use.

This may be a reference to the fact many crypto exchanges are under increasing pressure block Russian IP addresses in the country’s invasion of Ukraine and even freeze wallets that belong to Russian citizens.

Andrey Turchak (Secretary of the United Russia General Council) went further and claimed that it was important to “carefully approach the regulation cryptocurrency as a means for payment in Russia.” Cryptocurrencies have been banned as a payment method.

The Secretary said that there might be some room for improvement, since “the digital financial infrastructural is a fully fledged component of the financial system”. However, he warned about the possible “fraudulent” risks associated with crypto.

According to reports, the Central Bank still opposes all forms of crypto as well as mining, but may have more fish to fry in conventional finance.

Komersant reported new record highs in the dollar and euro exchange rates on the Moscow Exchange, which is still closed for stock trading. The euro traded at 125 rubles per EUR at the beginning of trading. While the greenback was trading at more than 112.

The Central Bank decided to reduce commission rates for individuals who buy foreign currency through brokers from 30% to 12%. This is per one media outlet. According to the bank, the move was intended to “level the playing field and preserve financial stability.”

However, Russia was not the only country that suffered on the international front. China now appears to be less willing to support Moscow in the financial markets.

via Yahoo! AFP reported that the Beijing-backed Asian Infrastructure Investment Bank has declared that it will cease business with Russia and Belarus.

According to the AIIB, it stated that its “management” had decided that all activities related to Russia or Belarus were “in the bank’s best interests and are currently under review.”

According to the bank, it was “actively monitoring” the situation in Ukraine and stated that its management team would do everything possible to protect the AIIB’s financial integrity.

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