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Russia decides between total ban and legalization of crypto investments, trade – regulation – Crypto News

Authorities in Russia are discussing two very different approaches to regulating cryptocurrencies and related activities. While the Bank of Russia reportedly seeks to ban the purchase of crypto assets, lawmakers are struggling to enact mining, exchanging and taxing rules that would effectively legalize cryptocurrencies.

Russian officials debate alternative crypto regulations

Russian institutions, including the central bank and lower house of parliament, the State Duma, are considering how to put the country’s growing crypto space in order. The head of the Duma’s Financial Markets Committee, Anatoly Aksakov, announced that officials are now discussing “two diametrically opposed approaches” to regulating cryptocurrencies – a total ban or, alternatively, legalizing crypto trading.

The focus of the talks is on how the new financial instruments are to be legally defined and taxed, according to the high-ranking legislature, quoted the Interfax news agency. They are to be finalized in the spring session of the Russian parliament so that Russia has clear regulations for the tax year 2023. Aksakov pointed out that the State Duma had already passed a bill on the taxation of cryptocurrencies in the first reading.

The new bill, which recognizes digital currencies like Bitcoin as tax property, was presented to the House a full year ago. The MPs gave their first approval of the draft in January 2021, when the law “On digital financial investments” came into force. The chairman of the Duma Legislative Committee, Pavel Krasheninnikov, commented on the matter, stressing that Russia must legalize cryptocurrency before taxing it.

Anatoly Aksakov went on to explain that some regulatory proposals are very harsh and include a total ban on the acquisition and possession of cryptocurrencies. Another approach is to approve the establishment of cryptocurrency exchanges and ensure that their operation is transparent to regulators, which also makes it easier for the Federal Tax Service to tax their transactions.

Another area that deserves attention is cryptocurrency mining, which is already there expand as an industry in the energy-rich Russian Federation. Aksakov was a fan the idea of ​​registering mining as a business and taxing it accordingly. Such a move would also allow Russia to introduce higher electricity tariffs for mining companies, often now use subsidized energy at household prices.

Bank of Russia wants to ban cryptocurrency investments

Meanwhile, a media report has shown that the Central Bank of Russia (CBR) will seek to ban cryptocurrency investments and identify risks they may pose to the country’s financial stability. It is said that these risks increase with the spread of crypto transactions. The regulator has been a strong opponent of legalizing the circulation of cryptocurrencies in the Russian economy, often referring to assets like Bitcoin as “Money substitute“As well as their acceptance as Means of payment.

According to two sources from the Russian financial sector cited by Reuters, the monetary authority is now discussing a possible ban on new purchases of crypto assets with market participants and experts. If accepted, the restrictive measure would have no impact on previous acquisitions, one of them stated on condition of anonymity. The other source, close to the CBR, revealed that the current position of the central bank is an “outright rejection” of all cryptocurrencies.

Russia decides between total ban and legalization of crypto investments, trade – regulation – Crypto News, Crypto Trading News

Asked for comment, Bank of Russia announced that it was preparing an advisory report to set out its position on the issue, but declined to go into detail. According to Russian media, a Working group on the regulation of cryptocurrencies formed in the State Duma will meet in December, starting with a review of a report prepared by the CBR.

In the recently published overview of financial stability for the second and third quarters of 2021, Bank of Russia quoted According to estimates by financial institutions, the annual volume of digital currency transactions by Russian residents is around $ 5 billion. The agency warned that cryptocurrency operations “pose significant risks to financial stability and investors.”

What regulatory approach do you expect from Russia in relation to cryptocurrencies? Do share your thoughts on the matter in the comments below.

Russia decides between total ban and legalization of crypto investments, trade – regulation – Crypto News, Crypto Trading News

Lubomir Tassev

Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Source: Crypto News Austria

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