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Technology
Central Bank of Russia Crypto Currency Crypto Currency law crypto legalisation Crypto Mining Technology

The Ministry of Finance Proposed to Test Russians Before Buying Cryptocurrencies

 

On February 18, the Ministry of Finance submitted a bill on the regulation of cryptocurrencies to the government. At the same time, public discussions began. On Monday, February 21, the agency published details of the document on its official website. 

According to the proposal of the Ministry of Finance, the use of digital currencies as a means of payment in Russia will continue to be prohibited. However, the Ministry of Finance suggests leaving cryptocurrencies only as a tool for investment. The bill defined the requirements for exchanges and exchangers that will deal with cryptocurrencies. 

Foreign cryptocurrency exchanges will have to register in Russia in order to obtain a license. The Ministry of Finance proposes to allow transactions with the purchase or sale of cryptocurrencies only if the client is identified. The deposit and withdrawal of cryptocurrencies will be possible only through banks using a bank account. 

Exchanges must inform citizens about the high risks associated with purchasing digital currencies. Citizens will undergo online testing before purchasing cryptocurrencies, which will determine the level of knowledge of the specifics of investing in digital currencies and awareness of possible risks. 

According to the official website of the Ministry of Finance, "with successful testing, citizens can invest up to 600 thousand rubles in digital currencies annually. If the testing is not passed, then the maximum amount of investment will be limited to 50 thousand rubles (about 0.015 bitcoins at the time of writing the news). Qualified investors and legal entities will make transactions without restrictions." 

The agency also proposes to consolidate the definition of digital mining as an activity aimed at obtaining cryptocurrency. The Ministry of Finance noted that they had received proposals from the Bank of Russia on the introduction of a ban on the organization of the issuance and circulation of digital currencies. 

Last week it became known that the Central Bank proposes to ban not only the organization of the issuance of cryptocurrencies and their circulation but also the dissemination of information about them. Also, the Central Bank prohibits banks and other financial market participants from owning private digital currencies. 

In addition, on February 18, the Central Bank proposed to introduce fines of up to one million rubles ($12,700) for the issue of private cryptocurrency. If the bill is adopted, individuals may face fines in the amount of 300 ($3,800) to 500 ($6,300) thousand rubles, and organizations from 700 thousand ($8,800) to one million rubles ($12,700). 

Earlier, CySecurity News reported that the Kremlin and the Russian government have estimated the Russian cryptocurrency market at $214 billion.
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Russia
Central Bank of Russia Crypto Currency Crypto Currency law crypto legalisation Cyber Security Russia

The Ministry of Finance of Russia Named the Main Threat of Cryptocurrency Ban in Russia

Deputy Finance Minister Alexei Moiseev said that the ban on cryptocurrencies and mining could slow down the development of new technologies and services, lead to the outflow of highly qualified specialists abroad, and the loss of tax revenues. 
Mr. Moiseev recalled that the relevance of cryptocurrency regulation is due to the growing popularity of citizens' investments in such assets. 

"We need to create clear and transparent rules for the participation of citizens and businesses in the financial instruments of the crypto market. The concept provides for the traceability of cash flows and crypto transactions, as well as the identification of users," the official stressed. 

He added that the only legal participant in the crypto market will be banks and exchanges that will oblige to comply with all the requirements of anti-money laundering legislation. "As for investors, they will be divided into qualified and unskilled, that is, those who do not have the necessary knowledge in working with digital financial instruments," he recalled. 

According to him, clear regulation excludes the possibility of a parallel financial system appearing in Russia, introduces clear rules of the game for market participants, and creates tools to protect investors' rights. In the case of a ban, all of them could automatically become violators of the law, and these are millions of people. 

Last week, the Bank of Russia stressed that it was in favor of reducing the interest of Russians in the cryptocurrency market. Elvira Nabiullina, head of the regulator, noted that the concept of regulating digital assets, which was proposed by the Ministry of Finance and approved by the government, does not allow to mitigate the risks, which the Central Bank warned about. 

In January, the Bank of Russia published a report "Cryptocurrencies: Trends, risks, measures", in which, in order to reduce threats, it proposed to ban the issuance, mining and circulation of cryptocurrencies in Russia. The central bank proposed to introduce a ban on the organization of the issuance or circulation of cryptocurrencies on the territory of Russia, to establish responsibility for its violation. 

The concept of the Ministry of Finance provides for the regulation of cryptocurrencies in Russia without their prohibition. The Ministry believes that the complete absence of regulation or prohibition of cryptocurrencies will destabilize the industry, increasing the share of the shadow economy and the growth of fraud, and law enforcement will not be able to effectively respond to crimes using such instruments. 

At the end of January, Russian President Vladimir Putin called on the government and the Central Bank to come to a consensus on the regulation of cryptocurrencies and report on the results. So, by February 18, the Ministry of Finance, together with the Bank of Russia, should prepare a bill on the regulation of cryptocurrencies.
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Russia
bloomberg Central Bank of Russia Crypto Currency Crypto Currency law crypto legalisation Cyber Security Digital Asset digital currency Russia

The Moscow Kremlin and the Russian Government Have Estimated the Russian Cryptocurrency Market at $214 Billion

 

Bloomberg claims, citing its own sources that the Kremlin and the Russian government have estimated the Russian cryptocurrency market at $214 billion. This assessment is used during the development of a plan to regulate the industry. 

The volume of cryptocurrency held by Russians was calculated in January 2022 by analyzing the IP addresses of major cryptocurrency exchange users and other information. The agency writes that the estimate may be an underestimate because many traders hide their activities. 

In November 2021, the Central Bank of Russia estimated the annual volume of transactions of Russians with digital assets at $5 billion. The data were obtained based on the results of a survey of large banking organizations in July 2021. The Central Bank also noted that Russian users are among the most active participants in the digital currency market. Russia is among the leaders in the number of visits to digital currency exchanges. 

Later, during the parliamentary hearings, Anatoly Aksakov, head of the State Duma Committee on Financial Market, estimated investments of Russian residents in cryptocurrencies at $194 million. Aksakov stressed that unqualified investors are also interested in digital assets, so the authorities need to determine the position on digital assets and legislate it. 

It is interesting to note that on January 20, the Central Bank published a report for public discussion, in which it proposed to ban the issuance, circulation, and exchange of cryptocurrencies in Russia, as well as the organization of these operations. The regulator also considers it necessary to ban the mining of digital assets and start monitoring the investments of Russians in cryptocurrency on foreign trading platforms. 

However, after the Central Bank report, Deputy Prime Minister Dmitry Chernyshenko approved a roadmap on cryptocurrencies, which proposes the regulation of cryptocurrencies, rather than their prohibition, identification of customers, responsibility for illegal trafficking of digital assets, as well as the development of a methodology for assessing the value of cryptocurrencies. 

Representatives of the Ministry of Finance, the Ministry of Economic Development, the Prosecutor General's Office, Rosfinmonitoring, the FSB, the Ministry of Internal Affairs, the Federal Tax Service, the Ministry of Finance, and the Bank of Russia participated in the development of the roadmap. 

On January 26, Russian President Vladimir Putin called on the government and the Central Bank to come to a consensus on the regulation of digital assets. The Head of state said that he was familiar with the discussion concerning the regulation of cryptocurrencies. 

Earlier, CySecurity News reported that the Russian billionaire Oleg Deripaska criticized the Central Bank for allegedly “infantilely closing his eyes to the growing cryptocurrency market.” As an argument, the billionaire cited the actions of the US Treasury, which, according to him, invests in the crypto industry.
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