14 Feb 2022 13:12

Russian MinFin's concept for cryptocurrencies addresses all risks identified by Central Bank - official

MOSCOW. Feb 14 (Interfax) - The Russian Finance Ministry's concept for regulating cryptocurrencies addresses all risks previously identified by the Central Bank, Deputy Finance Minister Alexei Moiseyev said.

"The concept addresses all the risks that the Bank of Russia talked about. Comprehensible regulation excludes the possibility of a parallel financial system emerging in Russia, introduces clear rules of the game for market participants, creates instruments for protecting the rights of investors, including existing ones. If a ban is imposed, all of them could automatically become violators of the law, and this is millions of people," Moiseyev told reporters.

The concept provides for traceability of money flows and crypto transactions, as well as identification of users, he said.

"Banks and exchanges will be the only legal entry into the market and will be obligated to fulfill all the requirements of ant-money laundering legislation. Those who do not want to use legal options will face corresponding penalties. As for investors, they will be divided into qualified and unqualified, meaning those who do not have the knowledge needed to work with digital financial instruments," Moiseyev said.

The Finance Ministry believes that regulation of cryptocurrencies is needed due to the growing popularity of retail investment in such assets and because of how this market functions in general. "We need to create clear and transparent rules for the participation of citizens and businesses in the financial instruments of the crypto market," Moiseyev said.

Banning cryptocurrencies and crypto mining would slow the development of new technologies and services, and lead to an exodus of highly qualified professionals and lost tax revenues, he said.