The government of Russia has announced its scheme to legalize and control the circulation of cryptocurrency in the country. As announced on the Russian government official website, strict rules will be put in place to reduce the risk encountered by investors.
Major financial stakeholders in Russia which comprised of the Ministry of Finance, Rosfinmonitoring, the Bank of Russia, the Ministry of Internal Affairs, the Federal Security Service, the Federal Tax Service, the Ministry of Economic Development, the Prosecutor General’s Office all partook in the debate that birthed the plans to regulate digital assets trade.
Crypto Trading in Russia; What it Entails
After considering the trends in the financial market and technology advancement, the Russian government decided to be more committed to dictating the activities of crypto in the country than being relegated to the background of fast-transforming innovations.
The government plans to put up structures that will place priority on guarding the rights of investors. It intends to achieve this by making sure that market penetration authorization is only granted to qualified investors. Incompetent investors will be denied access at once.
Investors will not be allowed to trade until they have been licensed. On all crypto platforms, an operational license will be issued only to authorized users who have achieved a satisfactory degree of liquidity and equity.
Huge funds up to 600,000 rubles which is approximately $8,000 must be declared before it would be approved. Failure to do so will attract the dissolution of such a transaction, as it will be regarded as illegal trade.
The State will obligate crypto merchants to spell out all risks, dangers, and uncertainty attributed to any cryptocurrency they wish to invest or trade-in. This will ensure that integrity and transparency are maintained in digital asset transactions.
From Ban to Legalization
The regulation comes after the Central Bank of Russia (CBR) called upon the government to place a ban on cryptocurrency a few weeks ago. The Central Bank of the Russian Federation had feared that investors will suffer financial instability which might impact their wellbeing.
However, the legalization of cryptocurrencies on the global front is kicking off at a fast pace as this is the second-largest regulation to happen recently. Last week, India imposed a 30% tax on crypto earnings as its strategy of legalizing the digital asset in its economy. It is likely that there will be more legalization to come for crypto in the nearest future.