Russia Developing Legal Framework to Regulate Cryptocurrencies

Russia is developing a legal framework that would regulate the purchase of cryptocurrencies, Russia’s finance minister says, adding that the government wants to legitimize cryptocurrencies and wind down the black market.

Speaking at the II Moscow Financial Forum, Russian Finance Minister Anton Siluanov reassured Russian fans of Bitcoin and other cryptocurrencies that the government has no intention of outlawing cryptocurrencies.

The minister said,

“The state understands indeed that cryptocurrencies are real. There is no sense in banning them, there is a need to regulate them,”

Instead, the Russian financial authorities are now working to bring operations with cryptocurrencies into compliance with Russian law. The legislation, to be ready by the end of the year, envisions registration of would-be buyers and a clear definition of buying procedures and rules of circulation.

Explaining the need for tighter regulation, Siluanov pointed out that those investing in virtual money are subject to greater risks due to the lack of external regulation.

He said,

“We must make an organized market out of the black market,”

While not disclosing details of the proposed law, Siluanov said the ministry’s goal is to make the purchase of cryptocurrencies covered by law to the same degree as buying treasury bonds and other securities.