For quite some time, the issue of the circulation of digital currencies and the mining of such assets in Russia has been a topic of discussion.
According to a report by Kommersant on April 15, the Ministry of Finance’s proposed legislation on regulating the circulation of digital currencies in Russia provides a stringent regulatory framework and, for the first time, addresses crypto mining in detail.
The “On Digital Currency” document, in particular, introduces the notions of professional and non-professional customers, as well as the necessity to appraise products, trading norms, and mining.
Some experts believe the document has the ability to “push investors into the illegal market” and that the criteria for trading operators are excessively stringent, while others say it has the potential to “push investors into the illegal market.”
The establishment of a large number of operations for identification, accounting, and certification will have no impact on crypto transactions that take place outside of the Russian infrastructure, according to the specialists questioned.
Digital money can be recognized “as a means of payment that is not a monetary unit of the Russian Federation,” as well as an investment, according to the draft law. Russia, however, in December, said that it would not outlaw cryptocurrency, but instead tried to restrict the circulation of digital assets.
The standards for operators, according to blockchain lawyer Mikhail Uspensky, are “extremely overstated,” and “only the largest credit and financial organizations in the country” will be able to meet them.
Only lawful Russian companies can claim to be both operators and investors. Foreign cryptocurrency exchanges must create an economic entity in the Russian Federation in order to get a license to operate in the nation.
Russians are not prohibited from registering with international exchanges and using their services, according to Andrey Tugarin, general partner of the GMT Legal legal firm, but:
“It will be impossible to sell or buy digital currencies without identification. It will be possible to withdraw fiat currencies to the operator only through banks using a bank account.”
The Russian Federation has agreed to legalize cryptocurrency and cryptocurrency exchanges. As a result, some see Russia as an attractive jurisdiction for mining due to its low power costs, and believe that increasing liberalization of the status will increase demand for this sector.
Only time will tell if the initiative will aid in the establishment of new significant enterprises in the cryptocurrency market and allow for increased investment in the field.
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