The net for the bird, the money for the man – Russia has a habit of changing its mind very regularly on cryptocurrencies. But it seems that this time the decision is made!
A precise framework for Bitcoin and circulation under control
The government after hours of meetings with the Deputy Prime Minister and White House Chief of Staff (the Russian one, not the Washington one) Dmitry Grigorenko published its report. Entitled ” Concept of regulating the mechanisms of organizing the circulation of digital currencies » this is against the January 2021 bill in which it was requested to prohibit circulation of cryptocurrencies.
The Bank of Russia and the government have formally agreed on a future regime of circulation of cryptocurrencies.
In fact, by February 18, Russia will prepare a bill recognizing cryptocurrencies as an analogue of fiat currencies. This law will allow free movement digital currency in the country, just like the dollar or the ruble.
It should however be noted that any person wishing to carry out a transaction must fulfill the criteria of a complete bank identification. Whether through the traditional banking system, or through approved intermediaries.
Will meet these criteria banks with a universal license or exchangers p2p (peer to peer) legalized in Russia.
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A Russian initiative that could give ideas to Europe
Thus all exchanges, whether they pass through Bitcoin or via other cryptocurrencies, will be free but very strictly framed.
Any operation of at least 600,000 rubles, which is approximately 7020€ at the current price, must be declared. Each transaction outside this legal framework (amount and identification) will then become a criminal Offenceand an aggravating circumstance if combined with other faults.
Under the Russian Penal Code, fines will then be imposed for illegally accepting cryptocurrencies as a means of payment.
Details on the timing of the implementation of this law and the transition period are not addressed in the Russian statement on the project. However, it is important to note that the regulations will require quick decisions, so that cryptocurrency holders can achieve compliance. It is highly likely that at least part of the new regulations will come into effect second half of 2022.
The Ministry of Finance estimates that there are more than 12 million wallet (cryptocurrency wallets) in the Russian Federation. Their total value would exceed 2000 billion rubles, or about 23 billion euros.
The mining of bitcoins on Russian soil and everything surrounding this theme are not affected by this bill being prepared. There is no doubt that regulations will soon follow. We must not forget that Russia is currently the third bigger mining center of bitcoins (BTC), after the United States and Kazakhstan.
Despite many changes of position, it seems that Russia is confident now. Undoubtedly, the authorization of circulation and the regulation of cryptocurrencies will cause a lot of ink to flow in the weeks to come! Hopefully, adoption by a giant like Russia will open doors and give inspiration to its European neighbors !
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