Why is the Ministry of Finance against the ban on cryptocurrencies in Russia?

Today the Ministry of Finance spoke about the need to regulate cryptocurrency in Russia, and not ban it, as previouslyproposed by the Central Bank of the Russian Federation, and also called for respect for the rights of Russian citizens investing in cryptocurrencies.

What happened?

On January 20, it became known that the Central BankRussia proposed to ban all types of operations with cryptocurrencies in the territory of the Russian Federation. The regulator also proposed to introduce responsibility for organizing the issuance and exchange of cryptocurrencies, including with a complete ban on the activities of all crypto exchanges and crypto exchangers. A complete ban on investments in bitcoin and altcoins was supposed for both ordinary Russians and legal organizations.

Why?

The Central Bank argued its position with highthe risk of such investments. Strong pressure on the regulator was also exerted by the Russian special services, including the FSB. Their interest in banning cryptocurrencies stems from the possibility of funding undesirable organizations recognized (or which may be recognized) as foreign agents.

However, there may be several reasons for such a tough position of the Central Bank, the most logical are the following:

— Mining greatly harms the environment. (little effect)

Conservation of nature has become one of the key tasksgovernment. 2017 was the year of ecology in Russia, and since then, conversations about nature conservation and business development based on ESG policy have been ongoing. After the ban on cryptocurrencies in China, Russia became one of the “successor” countries of miners, which will inevitably affect our ecology.

— Competitor to the digital ruble

The Central Bank of Russia has long been nurturingplans to create their own digital currency. The appearance of the Digital Ruble in Russia was announced. The Central Bank sees how popular cryptocurrencies are among citizens and wants to eliminate an extra competitor.

—Cryptocurrencies can cause the withdrawal of money from the country.

Cryptocurrency transfers are not tracked in any wayregulators, bitcoin, ether and other digital currencies can disrupt the financial system and be used for money laundering by criminal groups.

True, there is another opinion!

Today it became known that the Ministry of Financeurged not to violate the rights of citizens buying cryptocurrency. In the opinion that the Ministry of Finance has already developed a concept for regulating this market and sent it to the government. The position of the ministry is quite reasonable - the ban on cryptocurrencies will not stop miners in any way and will not prevent, but will only increase the volume of fraud, while at the same time putting an end to legal Russian projects in this area.

What's next?

What happens next depends heavily ondecisions of the State Duma and personally the President of Russia, however, even in the parliament itself, the head of the Duma committee, Vladimir Gutenev, spoke about the need for REGULATION, and not a ban on cryptocurrencies, which would allow mining to be preserved in the country.

Now all that remains istrackfor the development of the situation…