According to reports, Russia’s Ministry of Finance has completed its cryptocurrency regulation bill and will implement it soon. The bill specifically mentions digital asset mining, which experts say will open up new prospects for participants. On the other hand, it could push investors into the “underground market.”
The Russian government has been undecided about how to regulate the cryptocurrency market in the country. The country’s central bank (known for its anti-crypto stance) suggested a blanket prohibition on all digital asset ventures within Russia’s borders at the start of 2022.
The suggestion was rejected by the Ministry of Finance and President Vladimir Putin. The former indicated that placing a legal framework on the business would be a preferable first step, while Russia’s Putin claimed that crypto (particularly mining) may benefit his country.
Months passed, and the institutions were unable to reach an agreement. It’s also plausible to presume that the government’s attention has shifted to the current military war, leaving the crypto regulatory issue unresolved.
Within the bill’s jurisdiction, crypto exchanges can be trading platforms with a minimum capital of 30 million rubles ($366,000), and crypto auctions can be businesses with a minimum holding of $1.2 million. Both businesses will be required to submit annual activity reports, meet internal control and audit standards, and establish a separate structural unit.
Only Russian-based businesses are eligible to apply for the position of digital asset operators. To operate in the Russian Federation, foreign organisations will need to get a licence and establish a subsidiary.
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