Russia's Ministry of Finance on Monday said it would consider cryptocurrency proposals from the country's central bank as long as they do not conflict with its own approach, paving the way for legislation regulating digital assets.
Disputes simmering over cryptocurrency regulations in Russia heated up on Friday when the finance ministry submitted a legislative proposal to the government that went against the central bank's request for a complete ban.
The Bank of Russia has proposed banning the trading and mining of cryptocurrencies due to the threat digital currencies pose to financial stability. But the finance ministry prefers laws governing cryptocurrencies, allowing them as a means of investment, but not as a means of payment.
The finance ministry's draft law aims to create a legal market for digital currencies, he said on Monday.
One proposal is for transactions involving the buying or selling of cryptocurrencies that require customer identification, a move that could detract from one of the main selling points of cryptocurrencies.
Other proposals include foreign cryptocurrency exchanges having to get licensed in Russia, and introducing a financial literacy test that determines how much individuals are allowed to invest.
Citizens who successfully pass the test will be allowed to invest up to 600,000 rubles (US$ 7,853) in digital currency annually, the finance ministry said. Those who fail will have an investment limit set at 50,000 rubles per year.
Central banks are also against cryptocurrency mining, where powerful computers compete with other computers connected to a global network to solve complex mathematical puzzles.
The bank has warned of the inefficient energy consumption and environmental impact of mining, while the finance ministry prefers to allow mining under a taxation basis.
The central bank did not immediately respond to a request for comment.
