The Russian finance ministry has stated that it will consider proposals on cryptocurrencies from the country’s central bank as long as they do not contradict its own position and had submitted proposed legislation governing cryptocurrencies, including client identification and investment caps.
In Brief:
- Russia’s finance ministry submitted a draft bill to regulate crypto and will work with the central bank unless it doesn’t contradict them.
- Proposed changes include customer identification, crypto license for foreign exchanges, and financial literacy tests.
Although the central bank proposed an outright ban on cryptocurrencies, the finance ministry has been pushing to regulate the sector in order to attract investment.
One of the proposed changes is to require customer identification for transactions involving the purchase or sale of cryptocurrency
And, other changes involve requiring foreign cryptocurrency exchanges to obtain a license in Russia along with future financial literacy tests for individuals who want to invest.
“The proposed changes are aimed at creating a legal market for digital currencies with the establishment of rules for their circulation and the circle of participants,” the ministry said in a statement.
The proposed bill comes after a report stating that crypto will be treated as an “analog of currencies” that will enable Russians to invest in digital currencies worth up to 600 thousand rubles ($7,700, 6,800 euros) per year after completing the test. The limit would be 50 thousand rubles otherwise.
The Russian government and the Bank of Russia have clashed over cryptocurrency adoption in the country. The Russian central bank has stated unequivocally that the use of cryptocurrency is similar to a pyramid scheme.
