Here’s What Russia’s Crypto Regulation Means for the United States

The Russian Ministry of Finance has proposed legislation regulating cryptocurrencies in the country, requiring investors to no longer remain anonymous and transactions to be limited to a certain amount, among other measures. In this episode of “The Crypto Show” on motley fool live, recorded on February contributors Jon Quast, Chris MacDonald, and Travis Hoium discuss whether this legislation could provide a regulatory roadmap for other countries, including the US.

Jon Quast: Passing Russia here. This is interesting. Last week we talked about Russia, the third player in the world in terms of Bitcoin mining in terms of what they supply to the hash rate. A bit of volatility in the cryptocurrency market because it seemed like the powers that be from various parties in Russia disagreed on where they were going as a country when it came to regulation. Actually, this is the breaking news this morning that the government and the central bank have agreed that they want to regulate cryptocurrencies, labeling them as foreign currency instead of classifying them as stocks or something. Basically, the proposal is that transactions of $8,000 or more, adjusted for currency, must be reported and exchanges must be licensed. This sounds like good news if you were wondering which route Russia would take.

Travis Houm: It’s also likely to be a framework where we can start thinking about in the US. In the US, when I was talking about the regulations that are going to be put in place here, it doesn’t look like there are going to be bans or anything like that. . But what are the rules? What are the limits on transactions? Do you treat it as a security or as a currency? My argument has long been that this is more like currency. We’ll talk about some of the reasons why I think when we talk about Solarium. But it’s interesting that they’re putting their bet down. This is the way we are going to see it. Because now, as the US tries to figure out what its regulations will look like, they are now competing against other countries, and are even seeing crypto havens pop up in typically island countries around the world that just want people to move. your crypto there to avoid taxes. There will be many cats and mice here from many different countries around the world.

Chris McDonald: I know we are going to play in another project, XRP, that’s had some interesting headlines that, maybe I’m not going to downplay that story, that could also affect regulation in terms of how governments and regulators are looking at cryptocurrencies right now. These are all important developments, even though they’re all over the world, in how US lawmakers might view cryptocurrency, whether it’s security or whether it’s a currency.