The Central Bank of Russia supports the development of digital financial assets but remains opposed to the legalization of crypto payments, its senior management reiterated. The monetary authority is currently working on a set of regulatory proposals which will be submitted to parliament by the end of the year.

The Central Bank of Russia takes a legislative initiative in the regulation of digital assets

The Central Bank of the Russian Federation (CBR) intends to file a legislative package regarding the regulation of digital financial assets (DFA) with the State Duma, the lower house of parliament. Under current Russian law, the term DFA refers to coins and tokens with an issuing entity, as opposed to cryptocurrencies like bitcoin.

Speaking at Finopolis, a forum dedicated to financial innovations, the bank’s vice-president, Olga Skorobogatova, explained that the proposals had three main objectives: improving taxation and eliminating tax arbitrage, developing platforms for exchange and regulate smart contracts.

The CBR executive noted the strong interest in the development of DFAs in Russia. “We think this is a very good new tool for financial market participants,” she said, as quoted by crypto journal Forklog.

Skorobogatova revealed that the monetary authority is currently reviewing nine applications from companies seeking a license to issue and distribute digital financial assets. Three “information system operators” – Sberbank, Atomyze and Lighthouse – have already been authorized to do so, she noted.

Bank of Russia maintains opposition to legalizing cryptocurrency settlements

Meanwhile, speaking in the Duma, CBR Governor Elvira Nabiullina said that while the Bank of Russia supports the development of digital financial assets, it is against the use of private cryptocurrencies in settlements. . Quoted by the Tass news agency, she also insisted that digital financial assets are not limited to crypto alone and underlined:

We have not changed our position that private cryptocurrencies, for which it is unclear who and how is responsible, which are opaque and carry high volatility risks, should not be used in settlements.

Discussions on the status of cryptocurrencies and the regulation of the crypto market in Russia have been going on for more than a year. The CBR has traditionally maintained a tough stance, proposing a blanket ban on related activities such as mining and trading in January.

However, war-related sanctions in Ukraine, including restrictions affecting international payments, have softened his stance. In September, the monetary authority agreed with the Ministry of Finance that under current conditions it would be impossible for Russia to do without cross-border cryptocurrency settlements.

Keywords in this story

Bank of Russia, CBR, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, DFA, DFA, Digital Assets, Digital Financial Assets, Initiatives, Legislation, Proposals, Regulations, Regulations, Russian, Smart Contracts, Tax, Taxation

Do you think the Bank of Russia can change its attitude towards domestic crypto payments? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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