The Russian Ministry of Finance is drafting a regulation that will legalize cryptocurrencies as a payment method.
The Russian newspaper Kommersant reported on April 15, that the Russian Ministry of Finance is nearing finalization of a draft law on crypto regulation and intends to legalize cryptocurrencies as a payment method.
The bill also addresses the issue of mining and provides the industry with the clarity it needs.
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The bill also introduces the concepts of professional and non-professional buyers, the need to establish rules of sale.
Kommersant reported that cryptocurrencies will become a recognized payment method “not the currency of the Russian Federation.” Cryptocurrencies will also be validated as an investment.
However, the bill does not recognize all cryptocurrencies. It is unclear which cryptocurrency Russia will back.
The bill would also place restrictions on who can register as an operator of an exchange or digital trading platform.
There will be a regulatory requirement of 30 million rubles first, and then 100 million rubles required before approval to operate in Russia can be obtained.
Russia will legalize crypto for payments. Surprise surprise.
— CZ Binance (@cz_binance) April 15, 2022
Russia will legalize cryptocurrencies for payments. Too much surprise.
Companies operating in the crypto space will also be required to make regulatory filings and announcements, just like traditional financial institutions.
In addition, any foreign organization that wants to operate in Russia will have to set up a unit in the country.
Experts believe that the stringent requirements will cause more investors to turn to the black market and other illicit options.
They argue that only the largest financial institutions can operate as either a merchant operator or an exchange operator.
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Chain lawyer Mikhail Uspensky said the requirements were “excessive” and that “only the largest credit and financial institutions in the country” could meet them.