Russia’s Finance Ministry has passed a draft law which will allow the sale of cryptocurrency in Russia, with various restrictions. The Kremlin had been considering this step following repeated warnings from President Putin about the risks associated with high-risk investments such as cryptocurrencies.
Russia has some advantages in bitcoin mining. The new law gives the green light to the sale of bitcoin, but with restrictions.
In Russia, a draft law permits the selling of bitcoin, but only under certain conditions.
According to a report in the Russian daily Kommersant, the Russian Ministry of Finance has already developed the final law that will govern the bitcoin industry and cryptocurrencies in the Eurasian nation.
The plan that was given in February was evaluated, according to a recent release by the Ministry, based on comments from other departments. It was delivered to the Russian Federation’s Government for approval a few days ago after the adjustments were finished.
The law includes highly harsh restrictions that attempt to maintain tight control over bitcoin trade, according to the Kommersant team, which claims to have gained access to the paper.
In this sense, cryptocurrency trading is legal, as long as the users participating in the transactions are identified (“know your customer” or KYC regulation). According to LogitechGamingSoftware, Russians would be allowed to conduct digital currency transactions exclusively via banks utilizing a bank account.
As a result, the proposal specifies that cryptocurrencies will continue to be recognized as an investment, as well as “a means of payment that is not a monetary unit of the Russian Federation.”
This is a potentially divisive proposal, given that the Digital Financial Assets Law, which went into effect in July 2020, prohibits the use of cryptocurrencies as a form of payment for goods and services. Ksenia Yudaeva, the Central Bank’s first vice president, recently underlined this reality when she spoke out against the usage of bitcoin to circumvent sanctions.
The paper also presents the notion of professional and non-professional buyers, as well as the procedures for obtaining a license as a service provider, according to the Russian publication.
The necessity for foreign exchanges to form an economic entity in the nation in order to acquire authorisation is one of the conditions. This is despite the fact that local businesses must complete a slew of identification, accounting, and certification processes, including digital currency owner records, data storage, and regular data backups.
In this regard, the comments of blockchain specialist lawyer Mikhail Uspensky are mentioned, who believes that operator requirements are “grossly overstated” and that “only the country’s biggest financial and credit firms” would be able to comply with them.
All of these restrictions, according to Uspenky, have the ability to “drive investors into the unlawful market” by imposing onerous conditions.
The mining of bitcoin would be subject to a “experimental regime.”
The possibilities that open up for bitcoin miners stand out among the project’s recommendations, since their figure would emerge from the legal murky area by being recognized as an economic activity.
The Ministry of Industry and Commerce and the Ministry of Construction, Housing and Public Services, which proposed the introduction of an experimental legislative regime for miners, are taken into consideration.
The Russian Ministry of Economy advocated allowing bitcoin mining in areas with excess electricity, allowing miners to profit from lower pricing. Homemade mining will also not be censored, allowing people to increase their own earnings via this pastime.
It’s worth noting that this law does not have the backing of Russia’s Central Bank, which opposes cryptocurrency regulation and advocates their prohibition.
Most government officials, on the other hand, consider bitcoin regulation as a safety valve. Before the embargo put on the nation for its invasion of Ukraine, it was helpful to the economy.
A fresh discussion in the State Duma is one of the new stages toward the law’s ultimate ratification.
Anatoly Aksakov, the head of the Russian parliament’s lower house’s Financial Markets Committee, predicted that it would be adopted in the second quarter of 2022, along with changes to the Russian Tax Code relating to cryptocurrency transactions.
The “russia bitcoin mining” is a law that has been passed in Russia. The law gives the green light to the sale of bitcoin, but with restrictions.
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