For some time now, the issue of digital currency circulation and mining in Russia has been a topic of discussion.
According to a report by the Russian news source Kommersant on April 15, the Ministry of Finance’s finished legislative rules concerning the circulation of digital currencies in Russia establish a strong regulatory framework and, for the first time, cover crypto mining in detail.
The paper “On Digital Currency,” in particular, covers the notions of professional and non-professional customers, as well as the need of evaluating items, trading rules, and mining.
According to experts, the document creates new opportunities for miners seeking to exit the grey zone; nevertheless, others say it has the ability to “drive investors into the illicit market” and that the standards for trading operators are excessive.
As observed by the specialists questioned, the implementation of a massive number of identification, accounting, and certification processes will have no effect on crypto transactions that occur outside of the Russian infrastructure.
Cryptocurrency to be accepted as a form of payment: The draft bill states that digital currency may be accepted “as a form of payment that is not a Russian monetary unit,” as well as an investment. Interestingly, Finbold originally reported in December that Russia would not outlaw cryptocurrency but would seek to restrict its distribution.
Mikhail Uspensky, a blockchain lawyer, believes that the standards for operators are “very exaggerated” and that “only the biggest credit and financial institutions in the nation” would be able to fulfill them.
Only legal companies in Russia have the right to claim to be both operators. Foreign cryptocurrency exchanges must create an economic entity in the Russian Federation in order to get a license to operate in the nation.
According to Andrey Tugarin, general partner of the GMT Legal legal company, Russians are not prohibited from registering with and using foreign exchanges.”Without identity, it will be difficult to trade or purchase digital money. Only banks with a bank account will be able to withdraw fiat cash to the operator.”
The Russian Federation has chosen to legalize cryptocurrency and its trade. As a result, some see Russia as an attractive jurisdiction for mining due to the cheap cost of electricity and believe that further liberalization will increase demand for this sector.
Only time will tell if the attempt will aid in the establishment of new cryptocurrency market leaders and pave the way for more investment in the field.