This is why the Russian Minister of Finance rejected the Crypto ban

Russian Finance Minister Anton Siluanov has taken a strong stance against the outright ban of crypto.

Highlighting ongoing discussions between the Ministry of Finance and the Bank of Russia, Siluanov stated that he plans to delve deeper into the feasibility of employing cryptocurrencies for domestic and international settlements.

Russian Finance Minister: Why the Crypto ban is a bad idea

Siluanov's comments reflect a pragmatic approach to the cryptocurrency market, emphasizing the importance of regulation over limits.

“I am sure that the Central Bank and we will come to an agreement. This issue has been discussed for several years. We cannot block the circulation of cryptocurrencies. Therefore, we must control this channel. I am sure that we will find a solution,” Siluanov said.

The discourse around cryptocurrency mining and its application to settle transactions has gained a lot of attention. Both governmental bodies have expressed their predilection for using cryptocurrencies for foreign payments. This skewed position reflects a broad underestimation of the role of cryptocurrencies in the Russian financial system, balancing the balance between innovation and fiscal control.

Indeed, the discussion is expected to shed light on permissible activities in the cryptocurrency domain. Especially on international financial relations.

“We need to talk about what can and cannot be done with cryptocurrency. Now we have agreed to discuss the issue of mining with the Central Bank – the results of this process can be used for settlements in the country and in international settlements,” Siluanov added.

Read more: Crypto Regulation: What are the Pros and Cons?

The basis of these discussions includes the comments of the head of the Bank of Russia, Elvira Nabiulina. She previously approved the experimental use of cryptocurrency and mining in cross-border settlements. Siluanov's confirmation of regulatory intentions further reinforces the government's commitment to growing a regulated yet active cryptocurrency sector.

The economic implications of such regulatory developments are significant. With miners set to generate more than $2.59 billion in foreign trade settlement liquidity, there is potential for greater tax revenue from industrial mining. Indeed, Sergey Bezdelov, director of the Industrial Mining Association, highlighted the fiscal benefits of a regulated crypto framework.