Banning Bitcoin In Russia is ‘Same as Banning the Internet’, Says Minister


Bank of Russia Governor Elvira Nabiullina has previously argued that banning bitcoin in Russia is “absolutely possible”.

Russian Finance Minister Anton Siluanov has said that while it is impossible to ban cryptocurrencies such as Bitcoin (BTC), the Bank of Russia will continue to call on the state to ban cryptocurrencies in the country.

Russia’s crypto ban is “equivalent to banning the Internet, it’s impossible,” Siluanov told the Central Bank in a ministry briefing, as reported by Forbes Russia on Wednesday.

The Finance Minister reported that controlling the cryptocurrency industry as soon as possible would be better than banning it, which would ultimately allow the government to monitor the market and increase the country’s budget using taxes from cryptocurrency mining.

“I do not understand what is wrong with it, I do not understand why it should be banned,” Siluanov said in the briefing, “The easiest solution is to tax the market. According to the minister, the government should tax profits from the amount of Fiat assets invested and withdrawn.

Siluanov further added that:

“The central bank wants to impose a complete ban on crypto assets, which will primarily create risks to citizens,” thus affecting financial institutions and banks, as well as creating an opaque settlement market.

He found that the Ministry of Finance recognizes these concerns and therefore should limit the disclosure of cryptocurrency by non-professional investors as part of the crypto regulation concept released in early February.

Accordingly, the maximum amount for inexperienced investors will be set from 50,000 Russian rubles ($660) to 100,000 rubles ($1,300), the minister reported. Earlier, Alexei Moysev, Siluanov’s deputy suggested limiting such purchases to $660.

While the officials did not determine whether the potential limit would indicate a monthly investment or any other period. The ministry’s press office did not immediately respond to a request for comment.

Currently, the Bank of Russia does not support the idea of ​​allowing non-professional investors to buy cryptocurrencies such as Bitcoin, citing common risks such as fraud and money laundering. Crypto’s authority over mining is very negative, warning of fraudulent mining plans of “non-existent cryptocurrencies”.

After several years of negotiations, the Bank of Russia and the Russian government hope to find a common ground on crypto regulation in the country by this coming Friday.

Read Also: RBI Deputy Governer: Banning Crypto ‘Most Advisable Choice’

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