Putin Wants Legalization of Crypto Markets in Russia by July

Mar 07, 2018 at 14:06

As the use of virtual currencies continue to become popular globally, Russian authorities are planning to pass new legislation that would legalize cryptocurrency markets by July this year.

According to the Russian parliament’s official publication, president Vladimir Putin has set a deadline on July 1 for relevant cryptocurrency legislation to be adopted in the country.

The report noted that two draft laws were already developed which focuses on the use of blockchain technology.

Likewise, Russia’s Ministry of Finance highlighted that there will also be legal guidelines for the issuance of initial coin offerings while the country’s central bank has prepared a separate draft law on crowdfunding.

The report also suggests that the two agencies have agreed upon the main regulatory moves on cryptocurrencies aside from the rules on operations of cryptocurrency exchanges in the country. The Russian central bank is not keen on retail traders and investors participating in cryptocurrency trading.

“The central bank is against the legalization of this type of digital currency, since in this case, citizens can start actively investing in crypto-tools, not taking into account possible risks,” State Duma Committee for Financial Markets chairman, Anatoly Aksakov expressed.

It can be recalled that a separate bill that covers digital assets will be submitted to the Russian Parliament this month with an aim to establish governance rules surrounding cryptocurrency mining.

Under the proposal, individual entrepreneurs will be allowed to enter mining pools established by legally recognized entities and conduct activities to extract cryptocurrencies that do not fall under the criteria of industrial mining.

Aksakov is hopeful that both bills from the central bank and the finance ministry will be submitted to the Parliament this month.