The Ministry of Finance of Russia Proposed the Crypto Regulation Bill

The Ministry of Finance of the Russian Federation prepared and submitted to the government a draft law on the regulation of the cryptocurrency industry.

According to the document, the use of cryptocurrencies as a means of payment will be prohibited on the territory of the Russian Federation. Digital assets will be considered solely as an investment vehicle.

A special register of operators will be created, which will include all legal exchanges and cryptocurrency exchanges. A set of rules and requirements for providers of such services will also be developed.

To operate in the country, all local and foreign companies will need to obtain licenses, and control over them will be carried out by a body specially authorized by the government. In addition, foreign companies will have to register in Russia in order to obtain a license.

Also, for service providers, rules for corporate governance, reporting, information storage, internal control and audit, risk management systems and the number of own funds will be developed.

In addition, the Ministry of Finance proposed to withdraw and deposit cryptocurrencies exclusively through banking institutions. And crypto-currency transactions can be carried out only after the identification of the client.

Suspicious transactions will need to be reported to Rosfinmonitoring.

But not everyone will be allowed to invest in cryptocurrencies. Potential investors will first have to pass an online test to determine their level of knowledge about the specifics of cryptocurrencies. After successfully passing the test, citizens will be able to obtain permission to invest in digital assets up to 600,000 rubles annually. But if the testing fails, the amount of investment per year will be limited to 50,000 rubles. Qualified investors and legal entities will be able to make transactions without limits.

Exchanges will have to separate the cryptocurrencies they own from the assets of clients so that the digital currencies of citizens cannot be collected from the debts of the trading platform operator.

Funds of bidders will be held in nominal accounts, and exchanges and exchangers must maintain registers with the address-identifier of each owner of crypto assets.

Cryptocurrency mining is mentioned in the document as a type of activity aimed at obtaining cryptocurrencies. The draft law also spells out a mechanism for informing the tax authorities of the information necessary for them to exercise control and supervisory functions.

The Ministry of Finance stressed that they had received proposals from the Central Bank to ban the issuance and circulation of cryptocurrencies and introduce liability for relevant offences.

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