Russia Plans to Regulate Production and Control of Cryptocurrencies

A new draft law has been presented in Russia which proposes the regulation and production of cryptocurrencies and digital assets. 

Regulating Cryptocurrencies

A new law in Russia has been proposed which is aiming to regulate and control the production of cryptocurrencies and digital assets in financial sectors. The newly proposed legal framework would properly define regulatory requirements for cryptocurrencies, ICOs, mining, and trading. The law was also proposed in order to curb or stop illicit and illegal activities that might be contacted with cryptocurrencies.

The ministry of finance stated that the new regulations would reduce the risk of fraudulent activity and help create a more stable system for cryptocurrency taxation. It’s also worth to note that with the new law, un-licensed investors will only be able to invest up to 50,000 rubles worth around $889, into ICOs. According to the report, the Russian central bank deemed the new law not strict enough.

A Boost for the Russian Economy

Bitcoin and cryptocurrencies have been a big topic for governments and regulators in the last couple of months. In late 2017, the Belarussian government decided to officially legalize cryptocurrencies and make any cryptocurrency related activities tax exempt for the next five years. Analysts believe that more countries worldwide will aim to create laws that favor cryptocurrency businesses in order to attract companies and boost the countries economic activity.

Initial Coin Offerings have been on the radar of many regulatory agencies worldwide. The new Russian legal framework would require all entities that wish to conduct an ICO, to fulfill all regulatory requirements. The ministry of finance believes that the new ICO regulations will make it easier for companies to host token sales and comply with the necessary laws. Germany and France have proposed to discuss the regulation of Bitcoin and other cryptocurrencies in the upcoming G20 summit in Buenos Aires.

What are your thoughts on the new cryptocurrency regulations in Russia? Do you think that they are necessary in order to further legitimize cryptocurrencies worldwide? Let us know in the comments below!

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