Russia’s recently revised bill “On Digital Currency” limits crypto purchases for non-qualified investors while providing legal ground for a few cryptocurrency payments, according to proposed media. The draft law, proposed by the Russian finance ministry, in addition, introduces strict wants for platforms operating with digital assets.
Russian Citizens Who Don’t Pass Test to Buy Only $600 Worth of Crypto Annually
The Ministry of Finance of Russia recently submitted to the government an updated version of its bill “On Digital Currency” designed to comprehensively regulate the country’s crypto market. Details regarding the law’s provisions have surfaced in Russian media reports in the week.
According to the draft, qualified investors, or “professional purchasers of digital currency” as they're currently represented, can have unrestricted access to crypto assets. normal Russians, however, are going to be ready to purchase most of the 600,000 rubles (approx. $7,000) value of cryptocurrency annually. And that’s once they take a special communication.
Those Russian residents who fail to pass the take a look at are going to be allowed to solely acquire coins with a complete price not exceeding 50,000 rubles annually (around $600 at the current exchange rates), the Interfax press association discovered, quoting a supply at home with the document.
The new law defines the term ‘digital currency’ as “a set of electronic knowledge contained in an information system which will be accepted as a method of payment that's not the unit of Russia, or as an investment.” Digital currency is taken into account property in Russia, the report notes.
The wording seems to supply the legal basis for the use of cryptocurrencies in payments. however, at constant time, the bill reads that Russian legal entities, together with subsidiaries of foreign corporations and international organizations established in Russia additionally as people staying within the country for a minimum of 183 days inside 12 months, cannot settle for digital currency as payment for product and services.
The finance ministry has been lobbying to legitimize the circulation of cryptocurrencies in Russia whereas the central bank has opposed the concept and instructed a ban on crypto-related activities like the issuance and trading of digital coins. Most different institutions in Moscow square measure backing the Minfin’s approach however there’s also a general consensus against allowing payments with other currency than the ruble.
Russia to Introduce Stringent Standards for Cryptocurrency Companies
The draft law “On Digital Currency” goes to impose strict requirements for crypto platforms working within the russian federation. an “exchange operator,” that offers purchases and sales of digital currency on its own behalf and at its own expense, will need to keep at least 30 million rubles of capital. The mandatory threshold for “operators of digital trading platforms,” or those “conducting organized auctions,” is 100 million rubles.
If the bill is adopted as is, these businesses will have various other responsibilities, as well as preparing annual reports, maintaining records of digital currency owners, storing and backup trading information on a daily basis, and carrying out internal audits. The service providers are going to be added to a special register and their activities will be licensed and overseen by an authorized body appointed by the government.
The requirements are “extremely overstated” and solely the biggest financial institutions are going to be ready to meet them, blockchain lawyer Mikhail Uspensky commented for the Kommersant. Besides, solely Russian entities will be allowable to apply for the role of crypto operators. Foreign exchanges, for example, will have to establish a local subsidiary to get a license however many of them could also be prevented from doing therefore by mounting western sanctions over Russia’s war in Ukraine.
Quoting the draft, the Russian business daily also unveiled that solely identified users are going to be ready to purchase and sell digital currencies. edict deposits and withdrawals will be possible exclusively through bank accounts and crypto platforms will be obligated to report suspicious transactions to the Rosfinmonitoring financial watchdog. “Electronic wallets for digital currencies” will be subject to mandatory certification, though this is applicable only to wallets within the Russian crypto infrastructure.
The bill “On Digital Currency” permits both companies and individual entrepreneurs to interact in crypto mining, once they register with the government. Registration isn't needed for private individuals minting digital coins if the electrical energy consumed for this purpose doesn't exceed certain limits which will be determined by the relevant authorities.
If Russian lawmakers approve the law, it's expected to enter into force on Jan. 1, 2023. The State Duma, the lower house of the Russian parliament, is currently also reviewing amendments tailored to regulate the taxation of crypto-related operations within the country.
(Lubomir Tassev, Bitcoin.com, 2022)