The planned Russian crypto regulation will make it necessary for people who engage with cryptocurrencies as part of their business or profession – they need declare their transaction, but if not then this could be considered an act against criminal intent!
Russia has announced that they will be regulating cryptocurrencies, according to a Tuesday announcement. The government and central bank have reached an agreement on how these virtual currencies should work in order in the Russian crypto regulation for them not to threaten economic stability
The draft law from Russia’s government and central bank will define crypto as an “analogue of currencies.” Cryptocurrencies can only be used legally if they have complete identification through the banking system or licensed intermediaries.
In Russia, Bitcoin is not illegal but you have to buy and sell cryptocurrency through an established exchange.
Kommersant reported that according the country’s laws bitcoin transactions between locals aren’t prohibited; however they must be done via a “digital currency organizer” (a bank) or peer-to exchanging licensed in Russia.
With the new Russian crypto regulation law, cryptocurrency users in Russia are required to report any transaction larger than 600 rubles (roughly $8). Those who fail do risk fines or imprisonment.
The Russian government has yet to announce what it will do about digital currencies but after months of speculation, things on the russian crypto regulation front seem warmer than before. Businesses and citizens in Russia still have questions regarding how this decision could affect them so there’s no telling for sure if anything changes just yet…
The Bank of Russia has called for a nationwide crypto ban in January as an effort to protect consumers and restore public confidence. They warn about the speculative nature associated with digital assets, saying that financial firms should not facilitate these transactions as part if their proposal – which seeks out any potential risks before they become reality.
However, the proposal generated opposition from Russian Ministry of Finance. A few days after Central Bank’s call for a ban; Ivan Chebeskov warned that if Russia doesn’t regulate crypto then it might fall behind in technology.
President Putin has reportedly endorsed efforts to regulate the country’s crypto mining sector, which could lead Russia into an emerging industry.
Read our previous articles about Russia and Crypto here!
Image by OpenClipart-Vectors from Pixabay
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