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Legalization of crypto within Russia carries fundamental risks

The Central Bank of Russia allows the use of cryptocurrency in international transactions and is considering options for regulating mining. However, the regulator warns of the risks associated with the legalization of operations with cryptocurrencies within the country. Elizaveta Danilova, Director of the Financial Stability Department of the Bank of Russia, stated this.

“The legalization of transactions with cryptocurrencies within the country, their admission to the regulated financial system would lead to the realization of fundamental risks: for the well-being of Russian citizens, the stability of the financial system, the growth of illegal activities”

said Elizaveta Danilova in an interview with the National Banking Journal .

The issue of mining regulation, Ms. Danilova added, is being discussed. She recalled that the State Duma is considering a relevant bill, developed with the participation of the Central Bank. Today in Russia there is no legislation regulating mining. The corresponding bill was submitted to the State Duma last November 17, 2022. The Ministry of Finance opposed the proposal of the Central Bank on the total licensing of mining within the framework of the bill. The department insists on the joint approval of the regulatory act on the experimental legal regime with the Bank of Russia. The bill should have been approved by the end of 2022. However, as explained in the State Duma, its adoption was postponed due to fears that mining would be used to illegally withdraw money abroad. Consideration of the document will continue in 2023.


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