Russia bans cryptocurrencies

A bill on the regulation of the circulation of cryptocurrency and tokens has been submitted to the State Duma of Russia. It was prepared by a working group led by the head of the financial market committee Gennady Aksakov. The essence of the bill is that the use of cryptocurrency as a means of payment in the Russian Federation will be prohibited.

As you know, the question of the future of cryptocurrency has been discussed at the highest level for quite some time. Cryptocurrencies are ambiguous on the part of key figures in the Russian leadership and in the “economic bloc” of the Russian government. So, Vladimir Putin has repeatedly called not to ignore cryptocurrencies. Attentive to Bitcoin and other cryptocurrencies offers the head of Sberbank German Gref. At the same time, the head of the Bank of Russia Elvira Nabiullina is known, on the contrary, for her rather tough critical position regarding cryptocurrency. Until recently, they spoke harshly about cryptocurrency in the Ministry of Finance of the Russian Federation, but then, under the influence of an analysis of world practice, they changed their position a little.

The main claims that the authorities make to the cryptocurrency market are the possibility of using cryptocurrency for money laundering and for financing terrorist or criminal activities. The Bank of Russia proposed to prohibit the circulation of any digital currencies with the exception of tokens, while the Ministry of Finance of the Russian Federation believes that this decision can only lead to the emergence of a shadow cryptocurrency market. Therefore, it is necessary to create such mechanisms that will ensure the normal legal regulation of the cryptocurrency market and will be able to protect both the interests of the national security of the state and the interests of ordinary citizens involved in operations with cryptocurrencies.

The new bill aims to streamline the situation in the cryptocurrency market at least a little. So, the document introduces the definition of digital financial assets, which include cryptocurrency and token. Cryptocurrency creation activities - the so-called "mining" - will be recognized as entrepreneurial. In order to become one of the entrepreneurs, miners will have to exceed the energy consumption limits set by the government within three months.

Since, according to the bill, both cryptocurrency and tokens will be recognized as property, it will not be possible to use them as means of payment. But then they can be bought and sold. The procedure for transactions on the sale and acquisition of cryptocurrency and tokens for rubles and foreign currency will be regulated by the Bank of Russia. It is known that the functions of exchanging cryptocurrency for money and money for cryptocurrency will be provided only to legal entities licensed for such activities. This measure, according to the developers of the bill, will protect citizens from the actions of fraudsters, especially since not all Russians who want to purchase cryptocurrency have the appropriate knowledge. Many can simply fall into the trap of dishonest dealers, which will lead to a loss of money.
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