Russia's recently revised draft law "On Digital Currency" limits crypto purchases for unqualified investors and provides a legal basis for some crypto payments, according to local media. The bill, proposed by the Russian Ministry of Finance, also introduces strict requirements for platforms that operate with digital assets.
Russian Citizens Failing Test To Buy Just $600 In Cryptocurrency A Year
The Russian Ministry of Finance recently submitted the government an updated version of its bill "On Digital Currency" designed to comprehensively regulate the country's crypto market. Details about the law's provisions have appeared in Russian media reports this week.
Under the draft, qualified investors, or “professional digital currency buyers” as they are now described, will have unrestricted access to crypto assets. However, ordinary Russians will be able to buy a maximum of 600,000 rubles (approximately $7,000) worth of crypto each year. And that's after they take a special exam.
Those Russian residents who fail the test will only be able to acquire coins with a total value not exceeding 50,000 rubles per year (about $600 at the current exchange rate), the Interfax news agency revealed, citing a source familiar with the document.
The new law defines the term 'digital currency' as "a set of electronic data contained in an information system that can be accepted as a means of payment that is not the monetary unit of the Russian Federation, or as an investment." The digital currency is considered property in Russia, the report notes.
The wording appears to provide the legal basis for the use of cryptocurrencies in payments. But at the same time, the bill says that Russian legal entities, including subsidiaries of foreign companies and international organizations established in Russia, as well as people staying in the country for at least 183 days within 12 months, cannot accept digital currency as payment for goods. and services.
The Ministry of Finance has been pushing to legalize the circulation of cryptocurrencies in Russia, while the central bank has opposed the idea and He suggested a ban on cryptocurrency-related activities, such as the issuance and trading of digital currencies. Most other institutions in Moscow are support the minfinbut there is also a general consensus against allowing payments with any other currency than the ruble.
Russia to Introduce Strict Standards for Crypto Firms
The draft law "On Digital Currency" will impose strict requirements for crypto platforms operating in the Russian Federation. An "exchange operator", who offers purchases and sales of digital currency in his own name and for his own account, will have to maintain at least 30 million rubles of capital. The mandatory threshold for "digital trading platform operators" or those who "conduct organized auctions" is 100 million rubles.
If the bill is adopted as it stands, these companies will have many other responsibilities, including preparing annual reports, keeping records of digital currency owners, storing and backing up business data on a daily basis, and carrying out internal audits. Service providers will be added to a special registry and their activities will be licensed and supervised by an authorized body appointed by the government.
The requirements are “extremely exaggerated” and only the largest financial institutions will be able to meet them, blockchain lawyer Mikhail Uspensky commented for the Kommersant. Furthermore, only Russian entities will be able to apply for the role of crypto operators. Exchange houses, for example, will have to establish a local subsidiary to obtain a license, but many of them may be prevented from doing so due to increased Western sanctions over Russia's war in Ukraine.
Citing the draft, the Russian business daily also revealed that only signed-in users will be able to buy and sell digital currencies. Fiat deposits and withdrawals will be possible exclusively through bank accounts and crypto platforms will be obliged to report suspicious transactions to the financial watchdog Rosfinmonitoring. “Electronic wallets for digital currencies” will be subject to mandatory certification, although this applies only to wallets within the Russian crypto infrastructure.
The “On Digital Currency” bill allows both companies and individual entrepreneurs to engage in crypto mining, once they register with the government. Registration is not required for Individuals who mint digital currencies if the electrical energy consumed for this purpose does not exceed certain limits that will be determined by the corresponding authorities.
If Russian lawmakers approve the law, it is expected to take effect on January 1, 2023. The State Duma, the lower house of the Russian parliament, is also now reviewing amendments designed to regulate the taxation of cryptocurrency-related operations in the country. .
Do you think that Russia will implement the strict regulations for crypto platforms provided for in the draft law "On Digital Currency"? Share your expectations in the comments section below.
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