The Russian government announced that they will make digital assets like Bitcoin official alternatives for fiat money, but with strict regulatory measures.
With the crypto industry in Russia being ridden by uncertainties, it is surely taking steps in the right direction considering the previous idea of putting a blanket ban on everything related to digital assets.
According to the recently issued statement on February 8th, the government of Russia is reportedly working on an official law to regulate crypto trading.
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Parties that part-took in the discussion include the Bank of Russia, Ministry of Finance, Federal Security Service, Rosfinmonitoring, Ministry of Internal Affairs, Ministry of Economic Development, Prosecutor General’s Office, and the Federal Tax Service.
Based on the official report by the Russian government, the authoritative entities will enforce "strict obligations" on cryptocurrencies for those who participate in digital asset trading as a way to conduct professional business.
The report highlights the importance of these regulatory measures for individual traders, and the need to protect their interests via dividing people into "qualified and unqualified" investors. Likewise, the government will require crypto exchanges to issue notices on risks that come with digital asset investments.
Even more so, the law suggests that any crypto transactions over 600k rubles ($8K) should be monitored and declared by the receiver. If not, then it would be considered an illegal activity.
In order for the digital currency framework to be integrated into the financial system, the Russian government, and the central bank seek to bring the crypto industry "out of the shadows", making it a legal asset that can be used for financial services.
The "legalization" of cryptocurrencies in Russia might stem from the recent report that the region holds 12% of all circulating cryptocurrencies in the market, alongside Russian authorities posting a "road map" for digital asset regulations.
Likewise, president Vladimir Putin had shown clear support for crypto mining that has been booming in Russia, which he called a "competitive advantage."
