The news flying around is that Bitcoin and other cryptos will soon be legalized in Russia.
Following the appeal of the Ministry of Finance to the Russian government to legalize the usage of crypto, it appears there is finally a light at the end of the tunnel.
The government decided to integrate cryptocurrencies as part of its financial plan. This is to protect the rights of investors.
This news was made public on Feb. 8 when the government released a report. It stated that a draft for digital currency regulation would be introduced on Feb. 18.
More On The Regulation
Currently, the authorities are working out modalities to ensure that only licensed intermediaries or banks will sell these digital currencies. This part of the regulation means that individuals will not be able to buy cryptos on their own using their devices.
Financial institutions or platforms allowed to trade crypto must have good financial liquidity.
It also spells out bad news for crypto exchange firms looking to do business in the country. The only way exchange firms would operate is if the government licenses them. This is part of the country’s plan to clamp down on fraudulent activities while protecting the interest of citizens.
Also, all transactions carried outside the legal sector are termed a criminal offense and will be punishable according to the law. If crypto must be accepted as a legal tender, it must be according to the laws in the draft. Offenders will be heavily fined.
The Russian government will also control the cash flow in the country.
Russia Sees Potential In The Crypto Market
The authorities have highlighted some opportunities that it could benefit from if crypto is permitted.
From news publications, the country could receive about $13 billion from the regulation and taxation of digital currencies. The mining space is not left out given that it ranks third after USA and Kazakhstan.
Now that Bitcoin miners are having issues in Kazakhstan, Russia could be the next place to move if the government allows digital assets.
Russia is taking a significant step in being part of the digital economy. This is also coming after the United States planned tax policies for digital assets. More details of the draft will be out on Feb. 18.