Russian FSB and central bank agree to outlaw crypto as means of payment

Russian FSB and central bank agree to outlaw crypto as means of payment

  • Ali Raza
  • 21st February, 06:04
  • Russian central bank's view that all cryptocurrencies should be outlawed as means of payment was just seconded by the FSB.
  • The FSB is not entirely anti-crypto, but it does believe that the country should ban issuance and use of crypto as a means of payment.
  • The bill is expected to pass through the country's parliament in the next few months.

While the future of cryptocurrencies remains uncertain in most parts of the world, some nations remain more unsure of what to do with them than others. Russia is one such example, where news could turn good or bad, depending on the day. It is already known that the country’s central bank does not think that cryptos should ever be allowed to be a means of payment. Now, this stance was supported by the Russian FSB (Federal Security Service), according to new reports.

The FSB, considered to be a successor to KGB, was seemingly confused about whether it was possible to ban digital currencies as payment options. Then, the two departments attempted to come up with a solution regarding how to regulate crypto. The central bank remained convinced that everything crypto-related needs to be banned.

However, FSB was still willing to support legalization, and it even endorsed a regulatory framework that would help crypto miners. For a time, it seemed like cryptos may receive positive treatment in Russia, which is when the two agencies announced a compromise in a letter that Deputy Prime Minister Dmitry Chernyshenko sent to the country’s President, Vladimir Putin.

A new bill is coming

According to the letter, the two entities made a decision that cryptos are not to be issued or used as a means of payment. Deputy Prime Minister used the same letter to insist that the country’s Bill on digital financial assets sees the inclusion of multiple crypto-related proposals.

Meanwhile, one of the proposals says that all of the exchange of crypto into fiat should be performer through special operators. Basically, Russians would not be able to use crypto for buying anything, but they can still use it for getting rubles.

However, the country also wants to identify anyone who has even the slightest ties to crypto, even if they simply own a few coins and never use them. Anyone who fails to comply with such laws and rules risks being labelled a criminal.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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