The Russian Ministry of Finance is getting closer to finalizing the draft law on the extraction and circulation of digital assets. Depending on the coverage of Kommersantthe bill contains a comprehensive regulatory framework and for the first time addressed the mining aspect in depth.
Kommersant revealed that the current version of the Finance Ministry’s draft law “On Digital Currency” prescribes the rules for trading and mining such assets. The authenticity of the document was confirmed by two Kommersant sources close to the industry. The Finance Ministry did not immediately provide a comment.
Returning to its content, the draft established a series of aspects such as the terminology associated with digital currency, the legal framework for its circulation, emissions, etc. In addition, the document introduces a large number of strict requirements for identification, accounting and certification.
Russia’s Crypto Bill Could Lead Investors to the Black Market
Sources close to the industry sought to allay fears by saying that these requirements will not affect cryptocurrency operations outside of the Russian information infrastructure. However, Sergei Mendeleev, CEO of InDeFi Smart Bank, feels that the interpretation of this last aspect is confusing.
Citing an example from Tether’s website which states that it “doesn’t have an obligated person, but Russian law enforcement believes it to be Tether LTD.”
Apart from that, the document allows only national legal entities to play the role of both operators. Foreign crypto exchanges, in order to obtain a license to operate in the Russian Federation, must create a business entity.
While many experts applauded the move, believing the document would provide new opportunities for miners seeking a way out of the “grey zone”, others however feel it would push investors into the black market. The concerns raised carry weight to some extent, as Russia is known for its high-profile illegal market and has recently gained attention due to the current geopolitical situation.
In the past week, Weekly Tron reported on how Russia’s most feared darknet marketplace Hydra and a cryptocurrency exchange Garantex have been targeted by US sanctions for their alleged role in ransomware activities. The US Treasury Department teamed up with the FBI and the German Federal Criminal Police to shut down several Hydra servers in Germany, seizing $25 million worth of bitcoin.