Russian Government in Attempt to Regulate Cryptocurrencies

It has long been a burning question to find out what the position of a world power like Russia would be...

by Pavel Velichkov
02 February • 2 min
In Regulation

It has long been a burning question to find out what the position of a world power like Russia would be in regulating cryptocurrencies. The waiting might soon be over as the country’s Finance Ministry has now issued its Digital Assets Regulation Bill, which puts in place regulations for cryptocurrencies, mining, trading, and ICOs.

The main issue for the bill is that Russia’s central bank disagrees with it, arguing that cryptocurrency exchange should not be legally accepted. The monetary authority recommends that the rules set out in the bill be applied only to tokens that have the potential to attract investments.

On the other hand, the people behind the bill are positive that legalizing cryptocurrencies is a forward-thinking act bound to reduce the risk of fraud. Most importantly – it will bring revenue for the government with the increase of tax due to fiscal transparency. In banning crypto exchanges, the country would achieve nothing but a new black market it will not profit from.

According to the bill – cryptocurrencies and tokens are defined as digital financial assets; those are not legal tender in Russia.

As far as exchanging cryptocurrencies or tokens for other cryptocurrencies or fiat currencies, the finance ministry says that trading will be allowed only through authorized cryptocurrency exchange operators, which will protect investors’ funds.

Private operators and legal entities will be allowed to issue ICOs (tokens) for the purpose of fundraising. They will therefore not be anonymous and will include legal documentation that contains personal information such as the issuer’s physical location, personal name, website and the price of the token.

Non-licensed investors will be limited to investing no more than RUB 50 000 (approximately USD 900) in each ICO.

The final version of the bill is to be released no later than July 1, 2018. This means we can expect changes and corrections in the document until then.