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Highlights
- A draft document has been prepared by a number of Russian ministries and regulatory bodies to regulate crypto operations in the country.
- The nation’s competitive advantage over other countries on cryptocurrency mining is perhaps a significant reason behind the above move.
- The said document outlining rules and regulations related to crypto use and trading is expected to be released by the year-end.
Russian authorities are planning to implement crypto regulations and have drawn a roadmap outlining restrictions on cryptocurrencies rather than calling for a complete ban.
Must Read: Will Russia’s crypto ban proposal affect its IT sector and high-tech economy?
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Who has agreed to crypto regulation?
As per reports, a roadmap has been signed by the Ministry of Finance, Federal Tax Service, Ministry of Economic Development, Federal Security Service, Ministry of Digital Development, General Prosecutor's Office, as well as CBR, i.e., the Central Bank of Russia.
Here, it is pointed out that while the goals mentioned in the roadmap have been supported by all participants, the opposition came from the Bank of Russia, which insisted on banning cryptocurrencies in the country.
It must be noted that last week, CBR called for a blanket ban on activities related to cryptocurrencies, including their usage, exchange, and mining, citing them as a threat to the nation’s financial stability and citizens’ wellbeing.
Reasons for a lenient stance against the restrictive crypto policy
The Finance Ministry of Russia has stated that imposing a complete ban on cryptocurrencies was non-viable, and restrictions were needed to curb the risks associated with these digital currencies.
Further, regulations will ensure transparency and safeguard interests of the general public.
Moreover, Vladimir Putin, the Russian President, has mentioned in a recent meeting that Russia did have a competitive advantage when it came to crypto mining, for the nation boasted surplus electricity and well-trained personnel who were adept in the mining of cryptocurrencies.
How does Russia plan to go ahead with its crypto regulation plans?
As per the roadmap, by May 2022, the Finance Ministry is aiming to design a control system for peer-to-peer platforms, organisers, and operators.
Do Read: Binance, Houbi cease operations in China after crypto ban
Next, the adoption of anti-money laundering standards established by the global Financial Action Task Force (FATF) should be done by November. Rules for registration and reporting by various crypto service providers should be formed by December.
Moreover, failure to declare cryptocurrency transactions would attract administrative and criminal punishment, cites the document.
Bottom line
Nations across the world are calling for drafting regulations to limit the risks related to cryptocurrency trading for the crypto market is market by steep price volatility and its widespread use in illegal activities.
Interesting Read: Will Bans Hurt Crypto? Countries Banning Crypto Doubles in Three Years
