Russia's finance ministry to consider crypto legislation

This could pave the way for legislation governing digital assets. The Bank of Russia has proposed banning cryptocurrency trading and mining due to the threat digital currencies pose to financial stability. But the finance ministry prefers legislation that regulates cryptocurrencies, allowing them as an investment tool, but not as a means of payment.

The finance ministry's draft legislation aims to create a legal market for digital currencies. One proposal is for transactions involving the purchase or sale of cryptocurrency requiring customer identification, a move that may diminish one of cryptocurrencies' major selling points - their anonymity.

Other proposals include foreign cryptocurrency exchanges having to obtain a licence in Russia and introducing financial literacy tests that determine how much individuals are permitted to invest. Citizens who successfully pass the tests would be permitted to invest up to almost USD 8,000 in digital currencies each year, the finance ministry said.

The central bank also opposes cryptocurrency mining. The bank has warned of inefficient energy consumption and the environmental impact of the mining, while the finance ministry prefers to permit mining under a taxation basis.