Russia Says No To Crypto Loans In Its Regulatory Plan

Russian Finance Ministry clarifies its crypto regulation proposals, saying no to crypto lending and restricting the number of available cryptocurrencies.

Bishal Kumar Chanda2 min read
Russia Says No To Crypto Loans In Its Regulatory Plan

The Russian Ministry of Finance emphasized in an explanatory note that authorities in Moscow are planning to ban cryptocurrency lending or its use as collateral. The Russian Federal government recently approved this proposal, forming the country’s basic legal framework in the crypto industry. Additionally, the market participants are now required to inform citizens about the high risks involved in digital assets. According to news reports, the regulators are also thinking of imposing restrictions to control the advertising of crypto products and services.

To protect investors, the officials are also looking into ways to limit the number of cryptocurrencies available to trade in Russia. Most crypto exchanges rarely verify crypto projects, leading to investors getting trapped in frauds and pyramid schemes. The ministry further adds regulated circulation through licensed exchanges to limit the number of tradable assets and ensure investor safety. Even IMF Wants El Salvador To Strip Bitcoin Of Its Legal Tender Status.

The finance ministry also wants to enable non-residents to buy cryptocurrencies from domestic and foreign exchanges that have offices in Russia. However, they can only withdraw funds from these platforms through authorized local banks. The authorities are now trying hard to adopt comprehensive regulations for the Russian Federation’s crypto space. The finance ministry prefers strict regulation over prohibition, which is evident from its past decision not to adopt a blanket ban on cryptocurrencies.

By 18th February, we can expect to see the final government-approved regulatory plan, drafted by the Russian treasury department and its dental bank. The new legislation is expected to be adopted by lawmakers in Russia’s lower house of parliament in the spring session. With countries like El Salvador ambassadors for Bitcoin and crypto-backed loans, Russia takes a different approach towards the legalization of crypto using strict regulation. So will Russia have a comprehensive crypto regulation by this summer? Stay tuned with Bitcompare for more such news on crypto lending and borrowing.

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