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Finance Ministry of Russia urges Banks to sell Cryptos

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Russia’s Finance Minister Anton Siluanov intends to enforce crypto-related regulations and suggests banks sell digital currencies. A letter sent to Russia’s Prime Minister gives a picture to legalize crypto trading, enhance the crypto exchange system, and built more business models around it. Russian Banks will be granted a license to open doors for bitcoin trading. These banks can further act as exchange platforms for investors. Although, Russian banks make a full thrust to ban cryptocurrencies and crypto trading.

While Chamber of Commerce of Russia contemplates legalizing crypto mining and should be treated as a new business model. Sergey Katyrin, Head of Russian Chamber of Commerce and Industry, suggests moving the crypto from ‘gray zone’ in a letter to Finance Minister. It also stresses, enforcing taxations and converting existing thoughts on crypto optimistically. The letter also indicates, “defusing tensions on matters of illegal electricity use”. Certainly, there are problems that government wants to tackle, and as a result of which it wants to legalize crypto trading.

“It seems necessary to make significant revisions to current legislation and also to hammer out a range of new regulatory acts that will determine in particular the legal status of the mining as a kind of business activity, making it possible to exclude this activity from the ‘gray zone,’ ensuring relevant tax and other compulsory payments. In addition, this will make it possible to defuse tension on matters of illegal electricity use.”

Letter by Chamber of Commerce and Industry to Minister of Finance

Russia to develop another source of revenue

As per current reports, Russians own 2 trillion rubles ($26 billion) worth of crypto. Out of which, a small percentage represents the population’s total savings. Because of such vast investments, the government must legalize these funds through new regulations. Furthermore, the exchange platforms must be licensed in order to bring 180 billion rubles ($2.3 billion) of tax.

Consequently, many Russian agencies have agreed to enforce cryptocurrency and digital asset trading in the country. As per the roadmap, these regulations will come into effect by end of this year. Earlier in January, the Bank of Russia published its analytical report criticizing cryptocurrency mining and its trading and demanded a complete ban in the country. But now the sky is as clear and bright as a shining day for crypto lovers and investors.

According to the new laws cryptocurrencies will be taken as investment assets such as any other cash transaction. The participants have to go through a channel of mandatory KYC and Anti-Money Laundering( AML) procedures across all the regulated markets. Russia’s Anti-Money Laundering will have access to all the crypto-related transactions. For this purpose, a special Transparent Blockchain transaction tracking system will be established within the network.

President Vladimir Putin has encouraged the thoughts and efforts of the Finance Ministry. Putin also endeavors that the current generation is well trained and certainly knows the tech behind the trading, thus bringing more advantages to the country.

Also, read – Indian Crypto Tax: boost or bane for Investors

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