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The latest crypto comments coming out of Russia aren’t good. While certain industry regulations are being looked at, authorities believe that there is no place for virtual currencies until a clear guideline is developed.
Russia has a very fickle relationship with cryptocurrencies. One day you hear that crypto mining is expanding in the country, the next week you hear that 22 Bitcoin ATMs were seized in various parts of the country. The latter development has sparked concern as cryptocurrencies haven’t actually been outlawed in Russia.
Hope through Regulations in Russia
There have been some instances that gave crypto enthusiasts hope though. Authorities in the country are seeking to regulate aspects of the industry by imposing Know-Your-Customer (KYC) requirements for selected crypto transactions. Financial authorities are also looking to track Bitcoin transactions in a bid to try and prevent fraud and terror financing.
In addition, a draft law states that crypto transactions can only be completed by a previously licensed authority. While these tight regulations may be viewed in a negative light, it does show that the country is looking at a future with crypto in it.
However, President Putin’s special representative on digital and technological development, Dmitry Peskov, has given an update which may delay any celebratory dances. Sputnik News recently reported that Peskov said:
The emission and circulation of cryptocurrency cannot be allowed now. This contradicts the state’s basic function. The consistency is important. If we adopt a draft legislation on the principles of work with cryptocurrency at a general level, then we can discuss the implementation of those principles in ordinary life. But it is wrong to go the other way round.
Draft Laws in the Pipeline
While industry definitions and regulations are still very much up in the air, steps have been taken to obtain some level of clarity. Three bills were previously submitted to the country’s lower house with the second reading scheduled for later this year. Whether or not these are accepted and put into law should determine the future of cryptocurrency in the country.
Russia’s Deputy Finance Minister, Alexei Moiseev, had also suggested that cryptocurrency mining should be seen as a taxable activity. Similarly, Iran has recently declared crypto mining in the country as a legal industry. This move, in combination with varying other factors, even caused the price of Bitcoin to increase quite substantially in the country.
Peskov’s comments come just a day before the Eastern Economic Forum (EEF). The event, which seeks to encourage foreign investors to contribute to the Russian Far East region, is scheduled to run between the 11th and 13th of September.
Do you think that cryptocurrency has a legal future in Russia? Let us know in the comments below!
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