Russia will Allow Crypto Trading, But There’s a Catch

With the crypto industry in Russia being ridden by uncertainties, it is surely taking steps in the right direction considering the previous idea of putting a blanket ban on everything related to digital assets.

According to the recently issued statement on February 8th, the government of Russia is reportedly working on an official law to regulate crypto trading. 

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Parties that part-took in the discussion include the Bank of Russia, Ministry of Finance, Federal Security Service, Rosfinmonitoring, Ministry of Internal Affairs, Ministry of Economic Development, Prosecutor General’s Office, and the Federal Tax Service.

Based on the official report by the Russian government, the authoritative entities will enforce "strict obligations" on cryptocurrencies for those who participate in digital asset trading as a way to conduct professional business. 

The report highlights the importance of these regulatory measures for individual traders, and the need to protect their interests via dividing people into "qualified and unqualified" investors. Likewise, the government will require crypto exchanges to issue notices on risks that come with digital asset investments.

Even more so, the law suggests that any crypto transactions over 600k rubles ($8K) should be monitored and declared by the receiver. If not, then it would be considered an illegal activity.

In order for the digital currency framework to be integrated into the financial system, the Russian government, and the central bank seek to bring the crypto industry "out of the shadows", making it a legal asset that can be used for financial services. 

The "legalization" of cryptocurrencies in Russia might stem from the recent report that the region holds 12% of all circulating cryptocurrencies in the market, alongside Russian authorities posting a "road map" for digital asset regulations.

Likewise, president Vladimir Putin had shown clear support for crypto mining that has been booming in Russia, which he called a "competitive advantage."

Aaron S., Editor-In-Chief

Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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