News

Russian To Legalize Crypto Payments, But Proposal Causes Internal Concerns

Per a report from local news outlet Kommersant, the Russian Ministry of Finance has completed a bill addressing crypto payments in the country. The document was obtained by the local news website and confirmed by two different sources.

Russia To Legalize Crypto Payments, But Proposal Causes Internal Concerns

The bill could finally provide citizens and Russian crypto investors with clarity around digital assets and digital mining. Called “On Digital Current”, the document addresses previously unexplored aspects of Russian regulation for this nascent asset class.

Among these aspects is the classification of digital currency, the legal framework for its issuance and legal circulation in Russia, certifications, trading, and more. As Kommersant noted, Russian entities will need to be granted permission to trade cryptocurrencies and will need to comply with a rigorous identification process. The local media noted:

According to the draft law, digital currency can be accepted as a means of payment that is not the monetary unit of the Russian Federation, as well as an investment, while there must be no obligated person in relation to it.

Crypto platforms will need to comply with a minimum capital to offer their services in Russia. This amount is set at around $40,000 for exchange operators and over $100,000 for digital trading platforms.

These entities will need to approve a “stringent” process to stay compliant with Russian regulations, such as the creation of separate units, annual reports, internal control and audits, and complete registrations on specialized entities for Anti-Money Laundering (AML), and more.

In that sense, if a crypto exchange wanted to offer its services in Russia, operating from the ground, it will need to complete this process and get a license from an “authorized body” appointed by the Russian government. In addition, exchanges will need to keep strict control of their users’ data.

Why The Russian Crypto Payment Law Could Be Futile

Russia To Legalize Crypto Payments, But Proposal Causes Internal Concerns

The above could be cumbersome for small companies, and for the privacy of crypto investors in Russia. The data obtained from the users must be kept and updated daily.

As the bill clarified, according to Kommersant, only Russian entities can apply to offer their services. In order for foreign exchanges to get a license of operations, they would have to create a business entity in Russia.

At the same time, Russian nationals are allowed to trade cryptocurrencies on international exchanges. The Russian regulators seem to believe their Know Your Customer (KYC) policies are sufficient to provide the local authorities with their data. The media outlet added the following quoting Andrey Tugarin, managing partner of law firm GMT Legal:

It will be impossible to sell or buy digital currencies without passing identification. The operator will be able to deposit and withdraw fiat currencies only through banks using a bank account.

This bill seems a step in a good direction for crypto users in the country. However, they have raised concerns from Russian entities. Some believe the document fails to address key subjects.

Thus, people could avoid the law altogether and simply turn to international exchanges or the black market. Miners will have to go through a similar process as traders, as Russia expects to create a national registry for the sector.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

BlockDAG’s Innovative Low-Code, No-Code Tech is Redefining the Meme Coin Market – is it the Next Hub for Meme Coin Developers? 

Assess December 2024's prominent meme coins: Dogecoin (DOGE), Pepe (PEPE), & Peanut (PNUT). Learn about…

12 minutes ago

Best Cryptos for Significant Gains: Qubetics Completes 3,500 Buyers as Near Protocol and Toncoin Test Resistance Levels

Explore the best cryptos for significant gains! Qubetics presale soars past $2.7M, while NEAR and…

2 hours ago

Best Cryptos to Invest in November 2024: Solana (SOL), Cardano (ADA), and Rexas Finance (RXS)

Smart investors have chosen Solana, Cardano, and Rexas Finance among several clearly profitable cryptocurrencies to…

6 hours ago

Highly Anticipated Spot Solana ETFs Will Be Approved in 2025

Industry experts predict spot Solana ETFs may gain approval by late 2025, buoyed by a…

12 hours ago

Cantor Fitzgerald Will Acquire 5% Ownership Interest in Tether

Wall Street financial services giant Cantor Fitzgerald is all set to purchase a 5% stake…

12 hours ago

XRP Price Hits $1 Following Rumors Of Trump Meeting With Ripples CEO, What To Expect Next

The XRP price recently surpassed $1 after rumors sparked about Donald Trump meeting its CEO;…

13 hours ago

This website uses cookies.