Russia Moves to Formalize Cryptocurrency Market With New Legislation
Key Takeaways:
In addition, the bills establish a new limit of 300,000 rubles (nearly $3,730) per year for crypto purchases by non-qualified investors through a single intermediary after passing the Bank of Russia’s testing. Qualified investors can make limitless purchases.
Finally, residents will have to notify tax authorities of opening and closing crypto wallets abroad and report crypto transactions. Illegal use of cryptocurrency, including operating unreported exchanges with non-qualified investors, is punishable with administrative fines and disqualification from operating exchanges for up to 2 years.
According to Ria Novosti, Prime Minister Mikhail Mishustin highlighted that these regulations will create Russia’s own infrastructure for the circulation of digital currencies, allowing everyday citizens to trade and store crypto in local platforms and custody providers. He added that they will also curb anonymous and illegal crypto transactions and reduce tax evasion using digital assets.
Nonetheless, some anticipate that this new regulatory wave will bring a cleansing in the industry. Alexey Korolenko, executive director of Cifra Markets, stated that many crypto exchanges in Russia today will be unable to meet the legalization requirements and will close.
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