The Russian Ministry of Finance and the Russian Central Bank on encryption supervision basically reached agreement, will introduce the relevant draft supervision


China Times (www.chinatimes.net.cn) Reporter Wang Yongfei Ran Xuedong in Beijing reported that cryptocurrency has become one of the focus of attention of the Russian Ministry of Finance and other departments.Recently, the Economic and Commercial Office of the Embassy of the People’s Republic of China in the Russian Federation issued a statement, itar-Tass news agency reported that The Director general of financial Policy of the Russian Ministry of Finance, Sergei Chebeskov, said that the ministry has prepared a draft regulation of the cryptocurrency market and submitted it to the government for deliberation.Since the end of January 2022, Bloomberg quoted three people familiar with the matter as saying that Russian President Vladimir Putin expressed support for the Russian government’s proposal to tax and regulate cryptocurrency mining, Russia’s new regulations on cryptocurrency-related regulation have been on the agenda.The Russian Central Bank, the Ministry of Finance and the government have not reached a consensus on the regulation of cryptocurrencies.Previously, Russia’s central bank proposed a total ban on cryptocurrency mining and trading.In December 2021, Russia’s central bank banned mutual funds from investing in cryptocurrencies.The governor of the Central Bank of Russia, Nabiulina, has said that she is skeptical of cryptocurrencies and that Russia’s infrastructure should not be used for the use of cryptocurrencies, and plans to impose a total ban on the cryptocurrency industry, including issuance, trading and mining, in the near future.However, at a government meeting in early 2022, Putin denied the CENTRAL bank’s plan to ban cryptocurrency mining, arguing that Russia has some advantages in cryptocurrency mining, which should be taxed and regulated, and in favor of limiting mining to areas with surplus electricity, such as Irkutsk, Krasnoyarsk and Karelia.Putin asked the Finance ministry and the central bank to agree on crypto regulation.On February 13, a number of ministries, including the Central Bank, the Finance Ministry and the government, discussed how to regulate cryptocurrency related issues in Russia, with the goal of regulating rather than banning the crypto business in Russia.Russia will draw up a new bill on sweeping rules for the circulation of cryptocurrencies in Russia, which are considered analogies to currencies rather than digital financial assets, by February 18, according to the Finance Ministry.The Ministry of Finance believes that regulating the cryptocurrency market will not only guarantee transparency, but also help protect the rights and interests of consumers who buy related assets or use them in other technical solutions.According to the cryptocurrency regulation proposal issued by the Russian government, cryptocurrency can only be purchased through the banking system or licensed financial companies such as licensed crypto exchanges, so that the government can obtain the identity transaction information.In addition, all crypto asset transactions of more than 600,000 rubles must be reported to the federal Tax office, otherwise it will be considered a crime and fines will be imposed for illegal acceptance of cryptocurrencies.Some of the new rules are likely to take effect in the second half of 2022 or from 2023.Alexander Shokhin, head of the Federation of Russian Industrialists and Entrepreneurs (RSPP), said after a meeting on February 13 that the discussion led to a certain consensus that the centralized virtual currency would not be able to be used for payments, and that other aspects could operate under the premise of regulation.Cryptocurrency penetration is high in Russia, which has become the third largest bitcoin mining country.According to government documents, Russia has more than 12 million cryptocurrency accounts and crypto assets worth about 2 trillion rubles ($26.7 billion) among a population of about 144 million.According to the Russian authorities estimate, the Russian government is expected to collect up to 1 trillion rubles (about 13 billion US dollars) of encryption tax every year, and even the most direct tax collection can generate 146 billion rubles to 1 trillion rubles of encryption tax revenue.According to the website of the Ministry of Finance, Russian Deputy Finance Minister Sergei Vladimirovich said on February 14 local time: “The regulation of cryptocurrencies is due to the increasing willingness of Chinese citizens to invest in such assets, as well as the uniqueness of the overall operation of the market.We need clear and transparent rules for citizens and businesses to participate in the crypto market.”Mr Vladimirovich said crypto transactions and cash flows must be traceable, and users must be identified.Licensed banks and exchanges will be the only legal entry point into the crypto market and must comply with all requirements of the Anti-Money Laundering Act.Investors will be classified as qualified investors and novice traders.”A ban on cryptocurrency trading and ‘mining’ could slow the development of new technologies and services, lead to an outflow of highly qualified experts and a shortfall in tax revenues.Explicit regulation rules out the possibility of multiple financial systems in Russia, introduces clear rules for market participants, and establishes rules to protect investors’ rights.”Vladimirovich explains further.In recent years, the Russian Ministry of Finance, the legislative branch, the Federal Tax Service and other departments and the central bank’s attitude towards cryptocurrencies has been diametaically opposed.The central bank’s staunch opposition has stymied legislation in the legislature to regulate cryptocurrencies.The consensus reached by the government, the Ministry of Finance, the Central Bank and other departments on cryptocurrency regulation is a milestone. Although there is no formal regulation draft yet, there is no doubt that Russia’s cryptocurrency regulation is moving towards normalization.Disclaimer: This article is reproduced for the purpose of conveying more information.If the source is wrong or violated your legitimate rights and interests, please contact the author with proof of ownership, we will promptly correct, delete, thank you.Email address: newmedia@xxcb.cn

Leave a Reply

Your email address will not be published.