Russian Government to regulate Crypto Laws very soon

The Russian Government in synchronization with the Bank of Russia will soon enforce cryptocurrency regulation in the country. With this step, Russia will become the latest country in the world to regulate cryptocurrencies in its economic system. Later, the Russian Finance Ministry suggested banks sell cryptocurrencies. The news spurred around the globe with the letter sent to Russia’s Prime Minister by FM Anton Siluanov to legalize crypto. Also, the Chamber of Commerce of Russia gave its thoughts to legalizing crypto mining as a new business model.

Earlier, the Bank of Russia did not support the crypto and was very clear to ban it from implementation. But clearing the air now, Russia has come up with a rock-hard plan to regulate cryptocurrencies in the country. The Government and the Bank of Russia have reached an agreement to draft laws that will define crypto as an ‘analog of currencies’. Despite this, other countries are moving to determine crypto assets as legal digital assets. The Bank of Russia on the other hand tends to configure cryptocurrencies as a legal industry only if they have transparency through the banking system.

Also read: Finance Ministry of Russia urges Banks to sell Cryptos

Russia holds 3rd largest place in the world for Bitcoin Mining. While The United States and Kazakhstan stand behind Russia in bitcoin mining. Compass Mining which operates 2 facilities for bitcoin mining in Siberia considers the government act as “do-no-harm”. The company’s CEO, White Gibbs, suggests this as a positive influence for the rest of the world to consider crypto legality.

Russians holding billions of currency in crypto

According to the Russian newspaper Kommersant, a drafted law will be presented in the Russian Federation on the circulation of digital currencies by Feb 18th. Meanwhile, the reports also suggest crypto transaction of 600,000 rubles ($8,000) will be declared illegal and can be considered a criminal offense. A fine will also be imposed on the people accepting crypto payments.

Moreover, the treasury aims to identify Russian cryptocurrency users. According to certain calculations, Russian citizens possess roughly 12 million crypto wallets. These wallets hold around 2 trillion rubles of digital coins valuing US$27 billion. In addition to this, as per recent Bloomberg reports, it is revealed that Russians hold over 16.5 trillion rubles in cryptocurrency ($215 billion).

With this latest news, Bitcoin (BTC) rose to 3% yesterday morning while Ethereum (ETH) saw a boost of 4%. It is speculated, the Government may lucre $13 billion of tax amount from the entire Russian crypto economy.