The skirmish over crypto regulation in Russia has come to a temporary end. Because on Monday, February 21, submitted bill brings clarity to the post-Soviet bureaucratic jungle for the first time – as far as crypto is concerned, at least.
Accordingly, Bitcoin and Co. will not be banned – at least not as an investment instrument. However, they are still not permitted as a currency even under the new draft presented by the more crypto-friendly Ministry of Finance.
But cryptocurrencies also threaten to be tied into a tight corset of obligations and restrictions when used as an asset. All bitcoin exchanges in the Russian Federation require a license. If foreign stock exchanges want to be active in Russia, they must also provide evidence of official registration.
If you want to invest, you have to go to school
But the regulatory thumbscrew is not only tightening for companies. Investors must also be prepared for stricter requirements. In the future, the investment volume will be limited to 600,000 rubles (RU), the equivalent of around 6,800 euros, per person and year. However, this limit only applies to people who have passed a mandatory test that tests investors for their knowledge of cryptocurrencies and risk assessment. Those who fail can only invest 50,000 rubles a year in Bitcoin and Co. In addition to the test, a mandatory KYC will also be introduced.
However, the draft uses two different standards: Institutional investors can save themselves the test and are generally allowed to invest without restrictions.
“The proposed changes are aimed at creating a legal market for digital currencies and establishing rules for their circulation and the circle of participants,” the paper reads.
A short passage also mentions mining. This remains legal in Russia, but should be more closely integrated into tax legislation. Details are currently unknown.
The draft law could end a week-long dispute between the Ministry of Finance and the Russian central bank. The latter had called for a complete ban on cryptocurrencies and mining at the end of January. The Ministry of Finance disagreed – the parties have been at loggerheads ever since.
Putin himself had demanded agreement from the conflicting parties and the submission of a corresponding draft regulation. This is now available (a few days late) and still has to be confirmed by the Duma.
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