• M

    Max E.

    The Russian FinMin Proposes To Legalize Cryptocurrency

    Cryptocurrency regulation in Russia

    On February 21st, the Russian Ministry of Finance proposed its version of the bill on the regulation of cryptocurrencies to the government. The bill was prepared on behalf of the government of the Russian Federation.

    The ministry emphasized that the proposed changes are aimed at creating a legal market for digital currencies and establishing rules for their circulation.

    According to the document, the use of cryptocurrencies as a means of payment on the territory of the Russian Federation is prohibited, they are considered solely as a tool for investment.

    The bill provides requirements for exchanges and exchangers that will carry out activities related to the organization of the digital currencies circulation, and the creation of a special register of such operators. To obtain a license, foreign crypto exchanges will have to register in Russia. At the same time, exchanges will be required to inform investors about the high risks associated with the acquisition of cryptocurrencies.

    Full identification will be required for conducting transactions with cryptocurrencies. Banks will provide deposits and withdrawals of digital assets through a settlement account.

    Investors will be required to undergo special testing, depending on the results of which they will have a different limit on investing in cryptocurrency. So, if the test is not passed, the maximum that the user can be content with is investments of up to 50 thousand rubles a year, which at today's rate is equivalent to about 0.0165 BTC. Upon successful completion of the test, the investor will be allowed to invest up to 600 thousand rubles per year (0.198 BTC).

    Earlier, the Central Bank presented its own version of the legislation on the regulation of cryptocurrencies in Russia. It called for a complete ban on cryptocurrencies and mining in the country. The Central Bank proposed to punish violation of the requirements with a fine of up to 1 million rubles ($12, 600). The Ministry of Finance spoke out against this, as it believed that the ban would only exacerbate the problems associated with the crypto market. At the same time, the government had previously approved the concept of market regulation, based on the ideas of the Ministry of Finance.