Russia’s draft law that will regulate crypto will be drafted no later than February 18, according to reports.
The Russian authorities are working to recognize digital assets as a form of currency, according to reports in the Russian press, following a communiqué issued by the government itself .
Russian newspaper Kommersant reported today that the government and the Bank of Russia reached an agreement to draft legislation and amend existing laws on how to regulate cryptocurrencies.
They are now preparing a bill, estimated to be ready on Feb. 18, which will define cryptocurrencies as a “currency analogue” instead of digital financial assets .
Russia’s regulation will seek to integrate a mechanism for the circulation of digital currencies in the country’s financial system, while ensuring control over the cash flows of credit institutions, a government document reads.
The report further stated that it will only be possible to use crypto “in the legal sector” with full identification, through the banking system or through authorized intermediaries.
According to the media report Kommersant In addition to treating cryptocurrencies as currencies, the bill would establish that cryptocurrencies are crypto transactions of more than 600,000 rubles (approximately USD $8,000) must be declared. or constitute a criminal offence. Fines will also be imposed on those who illegally accept cryptocurrencies as a means of payment.
Change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. of course
Interestingly, the news comes three weeks after the Russian Central Bank to issue a report which proposed to outlaw cryptocurrencies, from their mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. to their marketing and use in general. Then, the very presidente Vladimir Putin dijo that it did not support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. the central bank’s stance, explaining that such a strict stance would be counterproductive for domestic innovation.
The idea of regulation rather than prohibition, was justified by the government itself which assures that the regulation will ensure the protection of citizens’ rights under a licensing regime aimed at cryptocurrency providers. “ The total absence of regulation of this industry, as well as the establishment of a ban, will lead to an increase in the participation of the black economy, an increase in cases of fraud and the destabilisation of the industry as a whole”, says the document.
The government’s communiqué
The communiqué issued by the government says que “e he government has determined the future of digital currencies in Russia. The turnover of such financial assets will be regulated regulation is when something is controlled by a specific set of rules. by the state with strict obligations for all professional market an area or arena, online or offline, in which commercial dealings are conducted. participants and an emphasis on protecting the rights of ordinary investors”.
The government notice adds that “the aim of the regulation is to integrate the mechanism of circulation of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies into the financial system and to ensure the control of cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. flows in the circuit of credit institutions”.
“The protection of citizens’ rights, in addition to dividing investors into qualified and unqualified, will be ensured through licensing requirements for cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. platforms. These, in turn, will be obliged to have financial ‘airbags’ in terms of liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. and capital capital is most commonly defined as the large sum of money you would use to invest. adequacy.” continues.
The Ministry of Finance, the Bank of Russia, the Federal Security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. Service, the Ministry of Internal Affairs, the Federal Tax Service, the Ministry of Economic Development, the Prosecutor General’s Office , among other Russian agencies, participated in the discussion on the regulation of the cryptocurrency market. .
Sources: Government statement , Blockworks ,The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain., Cointelegraph , archivo
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