Moscow has also established a new deadline for crypto regulation, vowing to achieve a consensus on the issue within a month of announcing it.
“Everything is happening actively in the government. I think that some kind of decision will be taken quickly. My expectation is that [the decision] will be made within the space of a month,” Alexey Moiseev, the Deputy Finance Minister, stated.
However, Moiseev acknowledged that the “main point” of agreement was that “both we and the Central Bank are against [crypto] settlements. Unfortunately, this will likely provide precious little in terms of grounds for discussion – as crypto settlements have already been outlawed in Russia." He continued:
“It is not yet very clear how we will [climb down from our repsective] positions. But we do not want to abandon the option of a compromise in the future. I think that as we work [on the matter], some kind of compromise will be formed.”
Following reports that the Russian government values the domestic cryptocurrency market at around $214 billion, a figure that would put roughly 10% of all crypto in circulation in Russian hands, news has emerged.
According to a report by Bloomberg, “two sources” close to the Kremlin said that Moscow has drawn up crypto assets estimates based on a variety of data indicators such as IP addresses of some of Russia's busiest cryptocurrency exchange users.
According to sources, President Vladimir Putin last week intervened to call for the closure of the years-long deadlock between pro-crypto supporters in government and the sternly anti-cryptocurrency Central Bank. Additionally, with crypto use increasing in Russia and mining-related difficulties becoming more pressing, lawmakers have attempted to speed up the glacial progress of regulatory development by establishing a government-Central Bank-business crypto working group.
The second meeting of the group is scheduled for this month, but it will mostly focus on semantic-related issues such as crypto jargon and its application in the legal industry.
Vladimir Putin's call for officials to settle their differences and produce regulation, delivered publically by the president, suggests that the executive is now growing weary with the deadlock.
The Kremlin has apparently conducted its own research into the amount of crypto assets held by Russian citizens - thus the updated figures. MPs and the Central Bank have previously said that they believe Russians possess a collective USD 65 billion worth of cryptocurrencies..
In January, the Central Bank urged for a complete ban on cryptocurrency and crypto mining, which was categorically rejected by the Ministry of Finance as well as other departments.
Since then, the Central Bank has made numerous pleas for a prohibition on crypto mining, stating both environmental and societal concerns.
But some MPs have angrily disputed the claims, stating that the Central Bank's position risks turning Russia into an international "laughing stock."