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The Russian Finance Ministry is drafting a law to legalize cryptocurrencies said Finance Minister Anton Siluanov in an interview aired on “Russia 1” TV channel on Saturday. The Finance Minister proposes treating cryptocurrencies like federal loan bonds, available to individuals.
Officials “are developing proposals on their legalization in the Russian Federation,” reported Bitcoin.com.
“All countries are working to legislatively regulate the use of this financial instrument, and the financial instrument is very volatile, that is, today it has one price, tomorrow another. In order for us not to have so-called deceived investors, regulation is necessary. The Ministry of Finance will prepare such a draft law by the end of the year,” said Siluanov, reported Russian state news agency TASS.
“There is no point in prohibiting them [crytocurrencies], it is necessary to regulate them… [The law] will regulate the procedure for acquiring, circulating, and registering participants who are going to invest and buy this instrument.”
“We believe it is possible for individuals to participate in the purchase of these instruments, but these purchases should be clearly regulated, identified, and settlements in these cryptocurrencies must be controlled by the relevant authorities.”
Russian President Vladimir Putin has taken a personal interest in the development of cryptocurrencies in the Russian Federation, helping to start a $100 million effort to develop this technology. Russia needs to diversify its economy away from hydrocarbons and Putin sees these instruments as a way to do so.