The Russian Government Plans To Implement Cryptocurrency Regulations

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The Russian Government Plans To Implement Cryptocurrency Regulations

28 Oct. 2018

According to the government's official journal Parliamentskaya Gazeta, Bitcoin skeptic Vladimir Putin wants cryptocurrency rules in place "by July 1." The legislation, which is a part of the Element Model Regulatory Bill, is supposed to establish rules for the usage of cryptocurrencies in Russia.

Separately, the Russian Finance Ministry intends to propose legislation that will make it illegal to utilize cryptocurrency as payment.

As the currency falls and the Kremlin bans money outflows, it is anticipated that demand will increase in Russia, perhaps leading residents to purchase Bitcoin as a safe haven.

The Biden Presidency and other governments attempting to penalize Russia for its incursion of Ukraine are growing increasingly concerned that Russian oligarchs, businesses, and state-sponsored groups may use cryptocurrency to escape sanctions.

Vladimir Putin In Russia Indicated That Mandatory Cryptocurrency Regulation Would Start On July 1

Putin has indicated that legislation governing cryptocurrencies in Russia should go into effect "by July 1" of this year, as said by Parliamentskaya Gazeta, the official government newspaper, published on February 28.

Putin has set a firm timetable for introducing the Element Model Regulation Bill, a regulation package that initially surfaced last year.

With its adoption, years of ambiguity will be put to an end in which bitcoin, along with corporate and private investors, lay in a grey area, with city officials in Russia making various inconsistent decisions regarding what was and wasn't lawful.

A regulation that was hastily passed in July 2017 and prohibited the dissemination of teaching materials about Bitcoin was overturned last week by a judge in St. Petersburg.

Anatoly Aksakov, the head of the parliamentary finance committee, stated during a meeting in late February that the "operation of the crypto market is related to special hazards, and countrywide regulation of this sector is therefore required."

The central bank and government members continue to disagree over certain important features of the ICO and crowdfunding regulations that Moscow lawmakers are preparing.

According to Parliamentskaya Gazeta, the Finance Ministry (MinFin) prefers regulation, while the Federal Bank of Russia (CBR) wants to prohibit ICO token investments specifically.

Central Bank Head: Cryptos Drool, Rubles Rule

The authorities still need to specify the consequences for breaching this legislation, but they will.

"The repercussions of breaking this rule have not been seen anywhere for so many years. According to Alexei Moiseev, Russia's assistant finance minister, the Finance Ministry made the decision to close this gap. Regulating cryptocurrency trading on authorized exchanges, arguing that laws are necessary to prevent people from being conned in the uncontrolled, opaque Crypto Wild West.

In Ten Days, The New Law Will Come Into Force

There has been some suspicion that sanctioned Russian businesses, or people may utilize cryptocurrencies to get over the restrictions put in place due to their invasion of Ukraine. However, authorities have shown proficiency in employing on-chain analytics to track payments. Industry professionals have cautioned that anybody looking to circumvent sanctions by using cryptocurrency would do so at their peril. Even particular digital wallet addresses have been placed to sanction lists by U.S. and EU organizations.

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