FinancialCentre reports – Russia is on its way to regulating crypto, but the Bank of Russia wants answers

London, UK, 4th March 2022, ZEXPRWIRECryptocurrencies have emerged as a hot topic in the mainstream media lately. Naturally, this has drawn in some investors looking to make a quick buck. From the outside looking in, they see stories of regular people turning into millionaires overnight and driving luxury cars like Lamborghinis. They hear how some cryptocurrencies can increase by thousands of dollars over the course of several weeks

FinancialCentre Broker Daniel Levin says that no one can guarantee that cryptocurrencies will make you a millionaire. However, over time, they’ve proven to be an excellent investment. The first cryptocurrency was launched by an anonymous coder named Satoshi Nakamoto in 2009. It was never known who this person or group of people were, his/their level of expertise, or if that even truly is his/their real name. We know that the Bitcoin network started with the help of this mysterious person, and the rest is history.

From 2009 until today, Bitcoin’s value has been on a wild roller coaster ride. This insane volatility scared many people away from investing in cryptocurrencies at first. People didn’t understand how they worked or why their value skyrocketed so suddenly. But, of course, more people did their own research and eventually realized how valuable they actually were.

Crypto regulation

It didn’t take long for other cryptocurrencies to emerge after Bitcoin’s launch in 2009. However, the regulatory environment forced many of these early currencies to close down until we entered 2013. Since then, we’ve seen the advent and rapid growth of hundreds of cryptocurrencies. These new “altcoins” can’t magically create value as Bitcoin did all those years ago, but they’re proving to be valuable nonetheless.

The need to regulate crypto assets has been apparent for a while now. Countries have been discussing the possibility of introducing strict laws to govern trading, investments, and usage of cryptocurrencies that will protect users from fraud. In fact, many governments have begun passing cryptocurrency regulations already. South Korea’s new crypto exchanges are required to share data with other financial institutions in order to prevent money laundering. Japan has officially accepted cryptocurrencies as money and regulated them just like traditional fiat currencies. The United Kingdom and the United States have also passed laws that require cryptocurrency exchanges to report suspicious transactions.

As more and more countries create stricter cryptocurrency regulations, it will open up the legal options for ICOs (initial coin offerings) as well. Since ICOs are becoming more common, it is important that they are legally recognized to protect both the investor and the innovator. Mr. Levin says that the need for such regulations for cryptocurrencies will increase exponentially in the near future.

The case of Russia

The Russian Ministry of Finance is moving ahead with its plan to regulate cryptocurrencies in the nation, and a bill has been submitted to parliament. The legislation follows the previously established roadmap, which was created by a number of government agencies, including key law-enforcement groups.

The statement also pointed to the distinction between Russia and the Bank of Russia, which is opposed to regulation and would rather see bitcoin trading and mining banned. Individuals and corporations should be fined up to 500,000 rubles (US$6,360) and 1 million rubles (US$12,480), respectively, suggests the central bank for crypto trading and issuance. The Bank of Russia’s objections will be taken into account in the bill’s further consideration, according to the Ministry of Finance.

The bill classifies cryptocurrencies as an investment product rather than legal currency, and they may not be used to pay for items or services. It also sets out conditions for cryptocurrency exchanges and over-the-counter trading. To obtain a license and be placed on a special government register, an exchange or desk must fulfill specific criteria. Foreign crypto exchanges must register legal entities in Russia to provide services in the country.

Mr. Levin says that in his opinion, the proposed legislation is very promising in terms of its scope. It defines cryptocurrencies as “property” or assets that can be exchanged for other goods or services. Moreover, users will not be subject to licensing requirements when they buy, sell, issue or exchange digital money on their own. They will have no obligation to report transactions because the tax service already does that. This is an important development from a legal standpoint, and it will allow traders to generate revenue without fear of criminal charges or taxation issues.

Mr. Levin thinks that this bill will encourage more Russian citizens to engage in cryptocurrency trading. He commented that this move would benefit the growth of the industry while also giving it a sense of legitimacy. Many individuals are afraid of using cryptocurrencies because they think that government regulation will be very restrictive and limit their ability to profit from cryptocurrency transactions. This bill may just lay those fears to rest.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

Published On: March 4, 2022