Russia to legalise cryptocurrency as means of payment 'sooner or later' - minister



May 18 (Reuters) - Russia will sooner or later legalise cryptocurrencies as a means of payment, Industry and Trade Minister Denis Manturov said on Wednesday, suggesting that the government and central bank may be moving closer to settling their differences.

Shortly before Russia sent tens of thousands of troops into Ukraine on Feb. 24, the finance ministry submitted legislative proposals that clashed with the central bank's demand for a blanket ban.

Manturov was asked at a forum whether he believed cryptocurrencies would become legal as a means of payment.

"The question is, when this happens, how it will be regulated, now that the central bank and government are actively working on it," he replied.

"But everyone tends to understand that ... sooner or later this will be implemented, in some format or other."

Russia has plans to issue its own digital rouble, but the government has only recently come round to supporting the use of private cryptocurrencies, having argued for years that they could be used in money laundering or to finance terrorism.

However, Central Bank Governor Elvira Nabiullina has said the bank cannot welcome investments in cryptocurrencies, which account for about $5 billion worth of transactions a year by Russians, and has proposed banning trading and mining them.

Citing risks to financial stability from the rising number of crypto transactions, other central bank officials said last year they did not see room for cryptocurrency to be used on the Russian financial market.

Manturov said regulations for the use of cryptocurrencies would in the first instance be formulated by the central bank, and then by the government.
Reporting by Reuters; Editing by Kevin Liffey

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.