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Highlights
- The Putin government and the Central Bank of Russia (CBR) have reached an agreement on the circulation of cryptocurrencies in Russia.
- Last year in December, the Central Bank of Russia proposed a blanket ban on all crypto-related activities.
- Earlier this year, Russian President Vladimir Putin stepped in, suggesting that the country does see the benefits that crypto mining bring, and that it should be further explored.
To accept or not to accept? Well, it’s the question that everyone in Russia’s crypto circles seems to be asking. Following months of mixed signals, Russian lawmakers in the country are all set to regulate cryptos in the future. Reportedly, the Putin government and the Central Bank of Russia (CBR) have reached an agreement on the future regime of cryptocurrencies in Russia.
This could mark a significant shift in opinion considering that it was only last year in December that the Central Bank of Russia proposed a blanket ban on all crypto-related activities. Earlier this year, Russian President Vladimir Putin stepped in, suggesting that the country does see the benefits that crypto mining bring, and that it should be further explored.
Even the Russian Finance Ministry hinted that they don’t want to fall behind the crypto race and blockchain development. Hence, CBR could consider regulating it rather than a blanket ban.
When will the new rules come into force?
According to the report in a Russian publication, it is anticipated that by 18 February, both the Central Bank and the government officials could well be on their way to draft laws on the circulation of digital currencies. It is expected that under the new regulations, cryptocurrencies will be recognized as an analogue of currencies and not as digital financial assets (DFA).
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The report suggests that some new regulations could come into force by the second of half this year or early next year. Globally, countries have worked in tandem with their treasury departments, like in the case of the US, to formulate crypto regulation plans.
Whenever the new rules come into force, Russians will be able to operate digital currencies as an investment vehicle, which would be under the government’s purview with the transactions happening through Russian banks. This would also mean that citizens will have to file their crypto taxes while filing their returns.
Viewpoint
This could also bring a sense of relief for several industry leaders who were criticizing CBR’s suggestion for a blanket ban. Market participants should also be buoyed by the possibility of working under the blanket of so-called legal crypto which could help them transact seamlessly. At the same time, it should also proposer the growth of the blockchain industry in the country and that of crypto mining.
Whenever the rules come into force, this could bring some closure to the see-saw between the two parties and bring them to parity with each other’s worlds.
