While some governments around the world are whole heartedly embracing cryptocurrencies, some sees them as illegal entities, thus enacting strict regulations to guide their use. According to a recent report, the Russian government is set to unveil a new set of regulations for its cryptocurrency market. The report claims that these regulations will be available at the end of the week. Fortunately for cryptocurrency advocates in Russia, the government prefers to regulate digital currencies rather than prohibit them.
The Russian government has a couple of options on how to handle the cryptocurrency situation in the country. Presently, the Russian government is hosting a debate on how digital currencies will work in the country. The government will release a new set of crypto rules by February 11. According to Kommersant, the meeting holds at the Moscow White House.
Russia To Legalize And Regulate The Use Of Cryptocurrencies
As of now, there are two proposals on how cryptocurrencies will run in the country. Interestingly, both proposals are coming from different arms of the government. The Central Ban proposes that there should be an outright ban on cryptocurrency activities. However, the Ministry of Finance wants cryptocurrencies to be legal but under strict regulations. However, there will not be any recognition of bitcoin as a means of payment.
The Central Bank’s idea of an outright ban is not so popular. The proposal from the Ministry of Finance seems to be more popular and favorable. If there are new control regulations, Russians with cryptocurrencies will use them as assets. However, the government will be strictly watching every move and they will pay taxes.
In a recent consultation paper, the Bank of Russia is advocating that all digital currency transactions should not go through Russia’s financial infrastructure. However, the Finance Ministry insists that authorities should differentiate between “white” and “black” crypto market activities. Nevertheless, both proposals agree that cryptocurrencies will not have a legal tender status.
Last week, the Deputy Prime Minister, Dmitry Chernyshenko signed a regulatory roadmap draft. The concept of cryptocurrencies has been agreed upon by several Russian ministries including the economy and digital development, Russia’s financial watchdog, Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service.
There are reports that about $26.5 billion worth of cryptocurrencies belong to Russians. There are also about 12 million crypto wallets belonging to Russians. However, the Russian government is working with a much larger estimate of about $215 billion in cryptocurrency.