Crypto Currency News

A bill to legalize crypto payments is presented in Russia

The bill could finally provide Russian citizens and crypto investors with clarity around digital assets

The Russian Ministry of Finance this weekend presented a draft law addressing cryptocurrency payments in the country. Called “On Digital News”, the document addresses hitherto unexplored aspects of Russian regulation for this nascent asset class.

According to sources that confirmed the nSews, the project provides that digital currencies can be accepted as an alternative means of payment to the monetary unit of the Russian Federation.

The bill could finally provide Russian citizens and crypto investors with clarity around digital assets and digital mining and provides a legal framework for their legal issuance and circulation in Russia, certifications, trading, and more.

According to the document presented, Russian entities will have to receive a permit to trade cryptocurrencies and will have to comply with a rigorous identification process. These entities will have to pass a “strict” process to comply with Russian regulations, such as the creation of separate units, annual reports, internal control and audits, and complete registrations in specialized entities for the fight against money laundering (AML), and more.

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Cryptocurrency platforms will have to meet a minimum capital to offer their services in Russia. This amount is pegged at around $40,000 for exchange traders and over $100,000 for digital trading platforms.

In that sense, if an exchange wanted to offer its services in Russia, it would need to complete this process and obtain a license from an “authorized body” designated by the Russian government. In addition, they must maintain strict control of the data of their users.

However, responses have already begun to be heard and experts criticized the project, calling it “useless.” Analysts said the requirements could be cumbersome for small businesses, and for the privacy of crypto investors in Russia. It will be impossible to sell or buy digital currencies without passing identification and fiat currencies can only be deposited and withdrawn through banks using a bank account.

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This bill seems like a step in the right direction for cryptocurrency users in the country. However, it has also raised concerns from Russian entities.

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