[Blockchain Today Correspondent Han Ji-hye] The Russian government and the central bank of the authorities have finally reached an agreement on how to deal with cryptocurrencies, which has been struggling for months between “ban” and “regulation” of cryptocurrencies.
US cryptocurrency media, such as Cryptopotato and CryptoNews, cited an article in the Russian economic magazine Kommersant on the 9th (US time), and the Russian government and central bank decided to treat cryptocurrencies as ‘analogs’ rather than ‘digital financial assets’. of currencies)’ was reported all at once. The draft of the relevant bill must be submitted by the 18th.
According to CryptoNews, the draft is likely to impose many strict restrictions on cryptocurrency ownership and circulation, and is expected to tighten regulations on cryptocurrency exchanges.
Meanwhile, when the news spread, the cryptocurrency community around the world was enthusiastic, saying, “The Russian government has recognized cryptocurrency as a currency.” However, Anto Paroian, chief operating officer of ARK36, a digital asset investment fund, said, “This situation will actually impose very strict regulations on the Russian cryptocurrency industry, and the current tax rates or taxable items for cryptocurrency transactions, And there is no clear information on whether or not taxes will be applied to transaction profits,” he commented. “For the time being, the safest option for Russian cryptocurrency investors is through an intermediary rather than directly investing in individual cryptocurrencies,” he added.
Over the past few months, Russia’s central bank has proposed an outright ban on cryptocurrencies as it could threaten the country’s financial system, and Russia’s finance ministry has advocated regulation instead of ban.
However, as Russian President Vladimir Putin’s mention of “regulation instead of ban” and his position on supporting the cryptocurrency mining industry became known, Russia’s position turned to regulation.
According to a Russian government statement published in the Russian economic journal Kommersant, the purpose of the legislation is to integrate digital currency into the existing financial system and to ensure control over cash flows within credit institutions. Cryptocurrency transactions will be possible only through legalized intermediaries or banks, such as exchanges and P2P platforms, and will be accompanied by identification.
Also, according to the initial phase of the draft bill, any cryptocurrency transaction over 600,000 rubles (about $8,000) must be reported or it could be classified as a crime.
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