Russia is all set to legalize digital currencies despite the news of banning the country’s top financial watchdog. The Finance Minister headed up the new proposal and regulation related to Bitcoin. The Bill was introduced in Parliament to make digital currencies legal.
The Bill is based on the Russian Law-enforcement agencies for regulating cryptocurrencies. Earlier, the Central Bank in Russia has planned to ban trading and mining and has recommended fines of $6360 for individuals and $12530 for the companies. Therefore, the Finance Ministry clarifies that it would be considered until it does not contradict the government’s stance.
Highlights on Draft of Digital Currency Law Bill
● The Bill has introduced Crypto as an investment tool, not as a legal tender.
● Cryptocurrency may not be used for paying for any services and goods.
● There are certain conditions for cryptocurrency exchanges and over-the-counter desks to fulfill to make a record and be licensed.
● The foreign Crypto Exchanges have to register legal entities in Russia for operating in the country.
● All the transactions will occur through bank accounts, and the KYC Rules have to be authorized by banks.
● Cryptocurrency Exchanges have to maintain a separate account for their crypto funds and the users.
● The government bodies will supervise cryptocurrency mining.
The Finance Ministry welcomes and supports Bitcoin but with some rules and regulations. However, the recommendations by the Central Bank of Russia on Crypto will be taken into consideration.
This comes as a respite for many Russian crypto enthusiasts who were dismayed by the blanket ban that the government had put on crypto activities recently.