TL;DR Breakdown:
- Russia’s Finance Ministry has passed a bill to regulate cryptocurrency.
- Digital currencies won’t be allowed for payment purposes, according to the bill.
The subject of crypto regulation has been highly debated by the Russian government. However, it seems this uncertainty will end soon as a new report from leading Russian news agency TASS confirms the Finance Ministry has submitted a bill to regulate cryptocurrency in the country.
Russia opens to crypto regulation
The bill was reportedly drafted and submitted to the Russian government on 18th February, stating how digital currencies will be used within their territory.
The Finance Ministry prohibited the use of cryptocurrency as a payment currency. However, crypto enthusiasts in the country will be permitted to use digital currencies solely as an investment instrument, according to the bill.
In addition to that, the ministry proposed creating a special register of cryptocurrency exchanges that will be permitted to operate in the country. These exchanges will be asked to test and set investment thresholds to divide investors in terms of qualification level.
Uncertainty in regulation
Since 2022, many investors and crypto-related companies in the country have had to face uncertainties in regard to crypto regulation in the country. While the government, including President Vladimir Putin, showed support for cryptocurrency, the central bank mulled on banning crypto mining and trading, which affected the crypto market in January.
Despite the unsteady regulatory stance in the country, Russians reportedly trade over $5 billion in cryptocurrencies annually. If passed, the bill could spearhead more crypto transactions in the country, and be a potential revenue source to the federation.
With clear regulation, the nation might also see an increase in cryptocurrency mining activities, given the abundance of cheap electricity in the country, as president Putin once highlighted. As Cryptopolitan reported, major exchanges perceive Russia as a potential market, and they are prepared to expand to the country, including Binance.
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