Russia publishes draft cryptocurrency regulation

The Russian Ministry of Finance has presented a draft law regulating cryptocurrencies. The organization has announced that it will set a cap on crypto investments each year, which requires enhanced protection rules.

Russia publishes draft cryptocurrency regulation

Top officials in Russia remain wary of accessing local crypto markets. The lack of agreement between Russia’s central bank and the Ministry of Finance is worrying investors.

As is well known, the central bank is sticking to a ban on digital assets, while the Ministry of Finance continues to demand corresponding regulations.

According to recently released information, the Ministry of Finance is not holding back from legalizing the market. The draft law submitted to the government states that the use of cryptocurrencies as a payment method will be banned in Russia, but can be considered an investment vehicle.

The Treasury seems willing to implement data protection regulations in this regard. If the bill is accepted, customers must disclose their identity for each crypto transaction.

In addition, the delegates explained that foreign digital exchanges must present a license to operate on the territory of Russia.

These traders offer their clients financial literacy tests that can determine how much individuals are allowed to invest.

Investors who successfully pass the tests can allocate up to 600,000 rubles or $7,806 per year in digital currency. Those who fail have an annual limit of 50,000 rubles or $650.

The ministry also noted that authorities should tax cryptocurrency mining. Russian President Vladimir Putin has shared the idea that Russia could benefit from this sector in terms of cryptocurrency mining. The country is a leader in digital asset mining, accounting for 11.2% of the world hash rate. It can compete with the US and Kazakhstan.

The Treasury believes Bitcoin and Gold are the same

Earlier this month, Russian Finance Minister Anton Siluanov suggested that local banks should offer cryptocurrency services. He also pointed out that capital allocations to such assets should be treated as investments in precious metals. Many experts believe that BTC and gold share similar properties. Both are considered alternative assets that investors often choose to diversify their portfolios. Bitcoin’s supply is also limited, and the cryptocurrency has a maximum token limit of 21 million, making it an attractive tool during financial crises and inflation.

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