Trade Minister Expects Russia to Legalize Cryptocurrency

Cryptocurrencies will be eventually legalized, a member of the Russian government has opined. The question is when this will happen, Trade Minister Denis Manturov stated as new crypto-related legislation advanced in the State Duma this week.

Crypto Legalization Is Current Trend, Russian Minister Acknowledges

Cryptocurrency can be legalized in the Russian Federation, according to a statement by the country’s Minister of Industry and Trade Denis Manturov, during the “New Horizons” educational marathon organized by the Russian “Knowledge” society. Quoted by the Tass news agency, the government official elaborated:

I think so… The question is when this will happen, how it will happen and be regulated. The central bank and the government are actively engaged in this. Everyone is inclined to understand that this is a trend of the times, and sooner or later, in one format or another, it will be done.

Manturov emphasized this should happen in accordance with the laws and rules that are yet to be adopted and formulated. Russian authorities have been mulling over the future status of cryptocurrencies and related activities such as trading and mining this year, with two opposing views clashing during the deliberations.

While the Central Bank of Russia proposed a blanket ban on crypto operations, citing threats to the country’s financial system, the Ministry of Finance believes they should be regulated rather than prohibited and has submitted a new draft law “On Digital Currency” which is expected to be adopted this year.

The ministry has been also working on the issue of taxation of income and profits from transactions with digital financial assets. This week, the lower house of Russian parliament, the State Duma, approved on first reading draft legislation tailored to regulate the matter.

Most institutions in Moscow have sided with the Minfin’s approach, including the federal government which backed the department’s regulatory concept in February. At the same time, the majority also agree with Bank of Russia’s stance that cryptocurrency should not be recognized as a means of payment.

Another recent report revealed that the authors of the new legislation have incorporated provisions proposed by the Ministry of Internal Affairs, introducing procedures for the seizure of digital currencies with a court order as part of criminal proceedings and the establishment of a special wallet for storing seized crypto assets.