As a report from Russian local news house Kommersant, The Russian Ministry of Finance has finalized a bill regarding accepting cryptocurrency payments inside the country. News and information were confirmed by Russian local news websites.
According to the sources drat bill is mainly about accepting cryptocurrency payments and accepting and legalizing crypto mining.
Under the new upcoming bill digital assets especially cryptocurrency will be recognized and accepted as a payment method but they will not be a monetary unit of the Russian Federation. Furthermore, crypto will be accepted and validated as an investment inside the country.
What is Russia Looking for?
legalizing cryptocurrency in Russia is always creating so much news and gossip. Russia had large active crypto users according to reports, but somehow Russia imposed a blanket ban on Cryptocurrency.
After that Russian government said they are considering cryptocurrencies. Most of the local news said the Russian government will come up with a new legal plan regarding digital assets.
After the Ukraine Russian war western sanctioned the Russian economy in so many ways. To avoid the damage first, Russia accepted crypto to exchange the country’s gas and fuel with their friendly trading countries.
The European parliament and many western counties warned that Russia will use cryptocurrency to avoid sanctions. Despite all gossip last week the Russian Finance ministry reports said they are revising a Cryptocurrency draft bill.
What is the background behind this bill?
So what is this new bill??? No, it’s not a new bill, a month before Russia invaded Ukraine, Russian President Vladimir Putin was backing the Russian government to accept crypto after legalizing it.
All the plans and laws were set but with the war, all the attraction and potential were on Russian defense, and the crypto bill was forgotten. Somehow already the European parliament proposed new laws for Russian users.
Last week Russian Prime minister Mikhail Mishustin said that the Russian people have nearly 10 trillion rubles ($130 billion) in cryptocurrency. He stated this while having a conversation on government TV with Jonny Tickle.
So, $130 Billion means a huge amount. It is nearly close to the Gold reserves Russia has recently. Russia has nearly an amount of $140 billion in gold reserves.
According to the Russian Prime minister’s controversial statement, Russia has a massive crypto adoption, despite no data confirming that Russia has a such amount.
This statement may be to show that Russia has a huge amount in Crypto so this will help them after accepting crypto inside the country.
Deep into the Bill…
So after all of these statements and news Rusia has completed the crypto bill including crypto mining also.
So deep into some key points inside the bill not every cryptocurrency will be allowed inside Russia. They have specially mentioned only cryptocurrencies that do not have an obligated person will be considered legal in the country. So Bitcoin will be able to use under the circumstances but clearly, yet they have not mentioned the accepted cryptocurrencies list.
Restrictions have been tightened for people who are looking to register as exchange operators or digital trading platform operators.
They will need to have 30 million rubles as a regulatory requirement later they will be required to have 100 million rubles to receive approval to operate in Russia.
Companies that are involved in the Crypto space also should full fill the new requirements. So if a foreign entity needs to operate in Russia first they need to set up a branch and a base in the country. So there are many new requirements inside this new bill still only a few have been released.
Many local experts say some requirements are so tight and tough that users will enter the black market. Furthermore, if Russians are looking forward to using foreign exchanges they should use local bank accounts to cash out.
So with all these hyper, we can guess a Russian digital currency will be created as we all know Russian banking giant Sberbank was granted permission to create a digital token.