Russian Ministry of Finance is actively working on a final crypto regulation bill

The ongoing issue of the circulation of digital currencies and the mining of said assets in Russia has been a topic of conversation for some time now.

The draft law on the regulation of the circulation of digital currencies in Russia, finalized by the Ministry of Finance, provides a rigorous regulatory framework and, for the first time, addresses crypto mining in detail, according to a report through the russian medium Kommersant on April 15.

In particular, the document “On digital currency” introduces the concepts of professional and non-professional buyers and the need to evaluate products, trading and mining rules.

Experts feel that the document offers new opportunities for miners who need to get out of the gray zone; some, on the other hand, believe that it has the potential to “push investors into the illegal market”, and that the criteria for commercial operators are too excessive.

As the consulted experts pointed out, the introduction of a large number of identification, accounting and certification procedures will have no impact on crypto transactions that take place outside the Russian infrastructure.

Crypto to be accepted as a means of payment

According to the bill, the digital currency can be accepted “as a means of payment other than a monetary unit of the Russian Federation”, as well as an investment. Interestingly, Finbold first reported in December that Russia would not ban cryptocurrencies, but tried to regulate the circulation of digital assets.

Blockchain lawyer Mikhail Uspensky considers that the requirements for operators are “grossly overestimated” and that “only the largest financial and credit organizations in the country” will be able to meet them.

Legal Russian companies are the only ones that can claim to be both operators. To receive a license to operate in the Russian Federation, foreigners cryptocurrency exchanges must establish an economic entity in the country.

According to Andrey Tugarin, general partner of the GMT Legal law firm, Russians are not prohibited from registering with international exchanges and using their services, but:

“It will be impossible to sell or buy digital currencies without identification. It will be possible to withdraw fiat currencies to the operator only through banks using a bank account.”

The Russian Federation has decided to go the way of legalizing cryptocurrencies and their exchange. With this, some consider Russia as an attractive jurisdiction for mining due to the low cost of energy and that further legalization of the status would increase the demand for this activity.

Only time will tell whether or not the effort will help the development of key startups in the cryptocurrency market and make viable an increase in investments in the sector.