The Russian Ministry of Finance will consider a proposal for cryptocurrency from the Russian central bank.
The proposals will be considered as long as they do not conflict with existing regulations. This paved the way for laws governing digital assets.
Disputes heated up over cryptocurrency regulations in Russia, when the local finance ministry submitted a proposal to the government that went against the central bank's request for a total ban on cryptocurrencies
The Central Bank of Russia itself has proposed banning the trading and mining of cryptocurrencies due to the threat digital currencies pose to financial stability.
But the finance ministry prefers to introduce legislation that regulates cryptocurrencies. Cryptocurrency here is equated as an investment tool, not a means of payment.
"The finance ministry's draft law aims to create a legal market for digital currencies," they said.
One proposal contains a transaction involving the buying or selling of cryptocurrencies that requires customer identification.
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 (Rp 107 million) in digital currency every year. 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 warns of the inefficient energy consumption and environmental impact of mining this cryptocurrency. Meanwhile the finance ministry prefers to allow mining under a taxation basis.