Alexei Kudrin, the former finance minister of Russia, has put forwarded the view that he favored self regulation when it comes to the sector handling crypto-currencies. His belief is that self-regulation will be much more effective compared to any kind of imposed regulation. The former minister's liberal views have been shared by himself on a number of social media sites. Kudrin, once a long serving member of Putin's administration, now leads a think tank which works on Russia's economic development.
Debate and elections
This debate concerning cryptocurrency rages on at a time when elections are looming in Russia. The new legislation has already set up a few fault lines between the Russian Ministry of Finance and the country's central bank. Arguments have broken out over a multiple aspects of this law. The cryptocurrency comment comes after the announcement of an agreement being reached by “Centrobank” along with “Minfin” on the aspect of legalizing the initial coin offerings. The two remains in fierce opposition on the subject of the legal status being attributed to a list of cryptocurrencies, including Bitcoin.
For the lay investor, Kudrin warned, investing in cryptocurrency is a risky affair. This will continue until standards are made and there are technological improvments made. His comment came in the wake of an article which lays bare the multiple agreements that are now present between two institutions which were given the responsibility to establish the cryptocurrency's legal standing.
Defining the elements
A law has been drafted by the Russian Finance Ministry titled “On digital financial assets”. The document was prepared in conjunction with representatives from the CBR. This bill clearly defines a number of terms like tokens as smart contracts. It also sets the rules for conducting the ICOs and also establishes crypto mining's legal regime. Rules for exchange of crypto-currency with rubles, property, or foreign fiat continues to be the bone of contention. The ministry has argued that legalizing crypto transactions will restrict the law violations and improve taxation transparency. Budget receipts will also be increased.
Russia's central bank is hesitant to accept such reasoning. It remains vehemently opposed to legalizing cryptocurrencies. The CBR insists that cryptocurrencies are not guaranteed by any government or backed by any legal entity.
Kudrin is widely seen as a financial genius who had steered Russia from the global ruins of the global financial crisis. According to analysts, this was made possible by the existence of Stabilization Fund, a creation of the Finance Minister himself.