After modifying the bill, the Ministry of Finance of Russia submitted it to the government. The approval of the law may occur during the second quarter of 2022.
The Russian Ministry of Finance has already prepared the bill to regulate the cryptocurrency sector in the Eurasian country, said the local newspaper Kommersant.
The government agency recently said it had revised the bill following recommendations received from other departments in February. Once they made the corrections, they submitted the draft law to the Government of the Russian Federation for approval.
The team of Kommersant stated they had access to the bill, pointing out that it establishes strict regulations. They explained that the draft law seeks to impose tight control on transactions with Bitcoin.
It authorizes the trade with cryptocurrencies but requires identifying the users involved in the transactions. Russians may carry out operations linked to digital currencies only through banks, using an account.
The Bill Allows Using Bitcoin as Payment in the Russian Territory
The bill establishes the acceptance of cryptocurrencies as an investment will continue alongside their use as a payment means.
That measure may be controversial due to the provisions established in the Digital Financial Assets Act in 2020. They prohibit using cryptocurrencies as payment for goods and services, as Ksenia Yudaeva highlighted. The first deputy president of the Bank of Russia said that when expressing her rejection of turning to Bitcoin to evade sanctions.
The document introduces the concept of professional and non-professional buyers and the requirements to get a license as a service provider. Foreign exchanges have to establish an economic entity in the country if they want to receive authorization. Local companies must follow many identifications, accounting, and certification procedures, such as digital currency ownership records and data storage.
In that regard, blockchain expert and lawyer Mikhail Uspensky considers the requirements for operators as overestimated. He argued that only the leading financial and credit organizations in the country would be able to comply with them.
Uspenky commented that those provisions could push investors into the illegal market due to the excessive criteria.
Bitcoin Mining Might Have an Experimental Regime in Russia
Among the proposals in the bill, the possibilities open for Bitcoin miners are the most prominent. The figure will leave the gray zone in legal matters when the authorities recognize mining as an economic activity.
The Ministry of Industry and Commerce and the Ministry of Construction, Housing, and Public Services recommended implementing an experimental legal regime for miners.
In that regard, the Russian Ministry of Economy proposed to allow Bitcoin mining in regions with surplus energy at affordable prices to benefit miners. They also contemplated not censoring home mining for individuals to improve their finances through that activity.
It is relevant to remember that the Central bank of Russia is still against regulating cryptocurrencies and supports their prohibition.
Even so, most government members see the regulation of Bitcoin as a beneficial escape valve for the economy. They think it can help circumvent the sanctions imposed on the country due to its invasion of Ukraine.
By Alexander Salazar
