To try to manage the explosion of cryptocurrencies, they want to legislate. The Russian Ministry of Finance announced on Monday a bill regulating cryptocurrencies in Russia, unlike the Central Bank, which proposes to completely ban these assets, which have been flourishing for several years.
“The proposed changes aim to create a legal market for digital currencies with the establishment of rules for their circulation and the circle of authorized participants,” the ministry said in a statement, claiming to have submitted this project to the government on Friday. Russia occupies the top of the world podium for the use and creation (“mining”) of cryptocurrencies.
They obtained legal status in 2020 and Parliament and some ministries have spoken out in favor of legalizing and regulating “mining”, seeing it as a potential financial windfall. In some regions with cold climates and cheap electricity, notably in Siberia, many Russians have made it a supplement or even a main source of income.
But the Central Bank, guardian of the health of the Russian banking system, caused dismay in January, by proposing a ban on cryptocurrency “mining”, investments and payments in the country. Under the draft text of the Ministry of Finance, payment by cryptocurrencies would remain “prohibited” and the latter “considered only as an investment tool”.
A limited investment amount
Exchanges and operators trading cryptocurrencies should comply with “requirements” in order to integrate a “special register of operators”. “The activities of these companies will be authorized and controlled by an official body determined by the government”, indicates the ministry, specifying that the foreign platforms “will have to register in Russia to obtain a license”.
Added to this is an identification of customers wishing to buy or sell cryptocurrency, which would put an end to anonymity, a key principle of the crypto world. “Citizens will be required to undergo online tests before purchasing cryptocurrency, which will determine the level of knowledge of the specifics of investing in digital currencies and awareness of possible risks,” the ministry added.
If the test is passed, the investment limit is 600,000 rubles per year (a little less than 7,000 euros). If he misses, the limit would be 50,000 rubles (less than 600 euros). Finally, the project provides for the taxation of income from cryptocurrency mining. The Ministry of Finance finally promises to “take into account” the Central Bank’s draconian ban proposals.