According to reports, this new law that will regulate crypto will appear in the Russian region soon, no later than February 18.
According to reports in the Russian press, and following a statement issued by the government, Russian authorities have been working hard to accept digital assets as a form of currency. Russian newspaper Kommersant revealed that the government and the Bank of Russia arranged an agreement to release a bill and amend existing laws to regulate digital currencies.
The government is now getting ready to launch a new law, expected on February 18, which will describe digital currencies as an analogy of currencies rather than digital financial assets. Russia will try to apply a new procedure to manage the circulation of digital currencies in the financial system while ensuring they have control over the cash flows of credit institutions.
The report highlighted that it would be possible to use digital currencies in the legal sector and market if users comply with total identification and go through the banking system or authorized entities.
According to Kommersant, in addition to dealing with crypto as currencies, the bill would set up that crypto transactions of more than 600,000 rubles must get declared to avoid being classified as a criminal offense. Fines would also fall on those who illegally receive digital currencies as a method of payment.
Russian Winds of Change
Interestingly, the news comes three weeks after the Central Bank of Russia issued a report, proposing to make cryptocurrencies illegal, from their mining to their trading and use in general. Later, President Vladimir Putin said he did not support the central bank of Russia and its position regarding crypto by explaining that such a strict position would be counterproductive to domestic innovation.
The idea of regulation instead of prohibition got justified by the government; it ensures all guarantees and the protection of the rights of citizens under a licensing regime aimed at cryptocurrency providers.
The Government Statement
The statement the government issued highlights that it has reached a conclusion about the future of digital currencies in Russian territory. The rotation of these financial assets will get tracked by the State with strict requirements; These requirements would be obligatory and would apply for all users in the market with a strong emphasis on the protection of the rights of investors.
The government notice also highlights that the goal is to fuse the circulation procedure of digital currencies into the financial system and control the cash flows in the highways of credit institutions.
The rights of citizens will get achieved by giving licenses to every single requirement that comes from cryptocurrency platforms. These, in turn, will get required to shield the platform in terms of liquidity and capital adequacy. The official financial entity, the Bank, and other prominent entities played a major role in the debate on the regulation of the cryptocurrency market.
By: Jenson Nuñez
