Russians Will Be Limited To Purchase Bitcoin Worth $7,700 Per Year

In a new bill aimed at regulating digital currencies in Russia, Russians would be limited the number of cryptocurrencies they can acquired annually.

According to FXStreet, the finance ministry-sponsored law defines Bitcoin and other cryptocurrencies as investment vehicles rather than payment options.

Russians who wish to acquire Bitcoin will be limited to a $7,700 annual purchase limit after passing through strict Know Your Customer (KYC) processes.

Before acquiring their chosen assets, investors would be asked to demonstrate their grasp of cryptocurrencies, according to the proposed bill. If they fail the exams, residents will be limited to purchase Bitcoin worth $650 each year.

Furthermore, the proposed regulation makes it illegal to withdraw digital assets from self-custody wallets. As a result, investors must monitor their withdrawals and deposits through bank accounts.

The bill puts an end to a spat among the country’s major financial sector organizations over establishing a clear policy on digital assets.

The measure was introduced by the ministry after President Vladimir Putin emphasized the importance of enterprises such as Bitcoin mining. This comes after Russia Chamber of Commerce head Sergey Katyrin urged the finance ministry to see Bitcoin mining as an economic potential rather than categorizing it as a risk.

Notably, the country’s central bank had proposed a complete ban of cryptocurrencies and related activities, citing a threat to financial stability.

Following the central bank’s advice, the finance ministry and the State Duma began developing the country’s crypto regulatory roadmap.

The agencies decided to submit the regulation after Putin asked the relevant entities to reach an agreement on how to proceed with crypto laws.

Russia’s emphasis on cryptocurrency legislation comes as the population’s acceptance of various assets has surged in recent months. Despite widespread acceptance, current figures reveal that over 60% of Russians’ crypto wallets are “dormant.”

Russians have been able to invest in cryptocurrencies such as Bitcoin since January 2021, thanks to a new regulation passed by Putin. The law, however, did not impose any restrictions on the amount of money that residents might spend on various assets.

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Patrick

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