The Russian government has decided to abandon the idea of outlawing cryptocurrencies, and instead impose new laws governing their use in the country”s existing financial system.
According to a statement released by Moscow’s official press service, the Russian government decided to withdrawal the central bank’s proposed plans to ban crypto mining and trading, and instead regulate virtual currencies and incorporate them into the traditional financial framework. “The circulation of such financial assets will be regulated by the state with strict obligations for all participants of the professional market with an emphasis on protecting the rights of private investors,” read the statement.
Once the new regulatory framework is finalized, cryptocurrencies will be treated like regular assets, and users will be able to purchase virtual tokens via domestically licensed and registered companies. This will ensure the crypto users’ identities are thoroughly verified, and information regarding their transactions is shared with government officials for up to five years. As such, the new regulations will essentially eliminate one of the main benefits of cryptocurrencies— that being anonymity.
Nonetheless, Russians will be able to trade any virtual currencies issued by licensed companies in the country, as well as have access to the central bank’s digital ruble once it becomes available. Foreign crypto exchanges will be permitted to conduct operations in the country, but they must be licensed in the nation they are registered in, as well as hold a representative office inside Russia. Meanwhile, any operations registered in tax havens will not be permitted to conduct business in Russia at all.
The Russian government’s latest proposals will categorize virtual currencies alongside foreign currencies, which are subject to similar regulations. The new laws are expected to be implemented sometime in the second half of 2022, or early next year.
As can be expected, crypto Twitter rejoiced at the news of finally gaining some level of legitimacy among governments of the world, with several prominent names in the space eagerly sharing the news. Presumably, this was ahead of looking into the actual details of the proposed implementation.
Information for this briefing was found via the Government of the Russian Federation. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.