Russia's Finance Ministry Opposes Central Bank Call for Crypto Ban

Russia needs to regulate cryptocurrencies, not ban them, according to the head of the financial policy department at Russia's Ministry of Finance, Ivan Chebeskov.

Chebeskov said the ministry opposes the stance of the Bank of Russia, which earlier this month issued a report calling for a full ban on cryptocurrency trading and mining. Chebeskov spoke during a conference on cryptocurrencies held by Russian publication RBK on Tuesday.

"We need to regulate, not ban," Chebeskov said "Regulation is sufficient to protect our citizens."

The Ministry of Finance has prepared a set of proposals and is waiting for the government to evaluate it, he said. Banning crypto transactions and mining would mean undermining the industry's technological development, Chebeskov said. "We need to let these technologies develop."

The Bank of Russia's report on cryptocurrencies called them a threat to the country's economic stability. The report suggested banning cryptocurrency trading and mining, as well as introducing a punishment for violating the already existing ban on using crypto for payments in Russia. The bank is waiting for feedback on the report until March 1.

Bloomberg reported that Bank of Russia Governor Elvira Nabiullina was successfully lobbied by the FSB, Russia's powerful security service, which had been concerned by the use of cryptocurrencies by members of the political opposition in Russia.