Amidst all the ‘hullabaloo’ going around crypto in Russia, the Russian government has finally taken a stand on it. Now, the government in Moscow is adopting a concept for the regulation of the crypto space in Russia.
According to an announcement published on 8th February, the Russian government “has determined the future of digital currencies in Russia”. Moreover, the executive power in Moscow has elaborated the plan, integrating the circulation of crypto in the Russian financial system.
Besides this, the cabinet is aiming to establish control over crypto-related flows in the banking system. The upcoming system will divide the crypto space into two classes: non-qualified and qualified classes.
Accordingly, crypto service providers have to meet certain capital and liquidity requirements. Besides this, they’ll have to inform Russians about relevant risks regarding cryptocurrencies.
Previously, the Central Bank of Russia was against the proposal of crypto regulation. In fact, they’ve proposed imposing a blanket ban on a range of operations with crypto. This included issuance, usage, trading as well as mining. However, the financial institution was ‘sidelined’ by almost every other Russian institution.
Most of them wanted to have a regulatory approach to crypto. In fact, the Russian government emphasized:
“The implementation of the concept will ensure the creation of the necessary regulatory framework, will bring the digital currency industry out of the shadows and create the possibility for legal business activities.”
In the discussion regarding crypto regulation, many authorities and institutions took part. These included the Federal Tax Service, the Ministry of Economic Development, the Ministry of Internal Affairs, the Federal Security Service, and the Prosecutor General’s Office.