Russia
Russia’s Finance Ministry introduces digital currency bill, brushes off Central Bank’s objections
Russia’s Ministry of Finance has upped the stakes in its drawn-out showdown against the country’s Central Bank by formally introducing a bill that proposes to regulate digital assets rather than banning them. On Feb. 21, the Ministry introduced a draft of the federal law “On digital currency” to the government. This stage of the legislative process precedes the bill’s introduction to the parliament for consideration. The agency cited the “formation of a legal marketplace for digital currencies, along with determining rules for their circulation and range of participants” as the rationale for the initiative. Emphasizing that the bill does not seek to endow digital currencies with legal tender status, its authors define cryptocurrencies as an investment vehicle. The bill proposes a licensing...
Clarity pushed back: Russian government fails to forge a consolidated stance on crypto regulation
On Feb. 18, the Russian Ministry of Finance kicked off public consultations on the rules of cryptocurrency issuance and transactions. While a welcome development, it is less than the country’s crypto space had expected to get. Earlier in the week, the government announced that by Feb. 18, a bill containing the finance ministry and central bank’s consolidated position on crypto regulation would be drafted. Updated estimates suggest that it will take at least another month for draft legislation to see the light. The main reason for the delay appears to be the central bank’s renewed resistance, which just several days ago seemed to have been overcome. Here is a roundup of the latest twists in this rocky ride. Round 1: Central bank’s ban proposal On Jan. 20, the Central Bank of Russia (CBR) is...
Russia officials fail to reach a compromise over crypto regulation
Discussions held on Tuesday between the Russian Finance Ministry and Central Bank officials on crypto regulation bore no fruit President Putin has urged deliberations between the central bank and the government to reach a common ground Russia President Vladimir Putin recently chipped on the cryptocurrency conversation – a matter that has brought forth divided opinion in the country. While one facet has strongly pushed for a blanket ban on these digital assets, the other has appeared to lean towards regulating them. Putin urged both sides of the aisle to have a sit-down to reach a resolution. Bloomberg reported that senior government personnel held a meeting regarding the matter on Tuesday, citing individuals who requested not to be identified as the meeting had not been disclosed to the pu...
Russian Ministry wants to legalize Bitcoin mining in specific areas
While the Russian government continues to work out a regulatory regime for digital assets, a federal ministry has made another proposal regarding the crypto mining industry. Russia’s Ministry of Economic Development has greenlighted the concept of crypto mining regulation in the country, proposing to allow mining operations in areas with “sustainable surplus in electricity generation,” local news agency Izvestia reported Tuesday. As part of the proposal, the ministry suggested introducing lower fees for setting up mining farms and data centers in specific Russian regions as well as offering reduced energy rates for such facilities. The ministry also wants to establish a power use limit for mining by individuals, reportedly proposing to introduce higher energy rates for increased energy spe...
Report: 74% of stolen funds from ransomware attacks went to Russian-affiliated wallet addresses in 2021
According to a new report published by blockchain analytics firm Chainalysis on Monday, approximately 74%, or over $400 million USD, of ransomware revenue last year were funneled into high-risk wallet addresses that are likely to have been based in Russia. The report analyzed ransomware hacks throughout 2021 and determined their affiliation to Russia through three key characteristics: Traces of Russia-based cybercriminal organization Evil Corp being behind a given breach; the group has alleged ties to the Russian government. Ransomeware programmed only against victims of non-former-Soviet countries. Ransomware strains that share documents and announcements in the Russian language. In addition to the selection criteria, it appears that web traffic data confirms the vast majority of ext...
Russia Recognized Bitcoins, Others crypto as a currency
Facebook WhatsApp Reddit Twitter Shares Russian government has move to recornize Bitcoin and other Cryptocurrency as a currency in the country. The Russian government and the Central Bank has come to Conclusions, to formally recornize cryptocurrency as means of currency in the country. The development is come after the initials plan to ban mining Bitcoin in Russia. .u080e74559fcb162bfd7331ffad6dae84 { padding:0px; margin: 0; padding-top:1em!important; padding-bottom:1em!important; width:100%; display: block; font-weight:bold; background-color:inherit; border:0!important; border-left:4px solid #16A085!important; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, ...
Russia set to recognise crypto as a form of currency, but with a catch
Authorities in the country have agreed to recognise crypto assets as currency though their use and trading will be regulated The decision comes less than a month after Russian authorities proposed outlawing cryptocurrencies in the country In what can best be described as a U-turn move, Russian authorities have formally agreed to treat cryptocurrencies as currency. News reports emerging from the local outlets in the country detail that the government will collaborate with the Bank of Russia to draw up draft legislation defining these assets’ use. Several parties were reportedly involved in the discussion that birthed the decision. Some of them are the Ministry of Finance, the Federal Tax Service, the Federal Security Service, and the Ministry of Internal Affairs. Russia’s centra...
Russian gov’t and central bank agree to treat Bitcoin as currency
The government and central bank in Russia have reached an agreement on how to regulate cryptocurrencies, according to a Tuesday announcement. Russia’s government and central bank are now working on a draft law that will define crypto as an “analogue of currencies” rather than digital financial assets, set to be launched on Feb. 18. Cryptocurrencies would function in the legal industry only if they have complete identification through the banking system or licensed intermediaries. Kommersant notes that Bitcoin (BTC) transactions and possession of cryptocurrency in the Russian Federation are not prohibited; however, they must be done through a “digital currency exchange organizer” (a bank) or a peer-to-peer exchange licensed in the country. The report also highl...
Simple math says Russia could collect up to $13B in crypto tax each year
The Russian government is expected to collect up to 1 trillion rubles ($13 billion) in crypto tax each year, as per an estimation by the authorities. The Bell, a local Russian publication, reportedly got its hands on the government analytic note that estimated the yearly tax revenue. According to the letter’s authors, Russians hold 12% or nearly $214 billion in crypto. The number of users on foreign exchanges is estimated to be about 10 million, added with the significant number of over-the-counter (OTC) crypto trades. The government agency believes even the most straightforward tax imposition can generate anywhere from 146 billion rubles to 1 trillion in crypto tax revenue. The note suggests two possible taxation methods: One for the crypto platforms such as exchanges, int...
Law Decoded: Tangible wins, new menaces and the global crypto taxation drive, Feb. 1–7
Every global event or major political crisis these days can trigger a digital asset-related conversation. As China welcomes the world’s top athletes to the Beijing 2022 Winter Olympics, showing off ultra-high-tech facilities and sports infrastructure, some United States politicians have raised concerns over the Games’ potential to act as a booster to the digital yuan’s adoption. In neighboring Myanmar, the military government that had overthrown the nation’s elected leadership a year ago is now looking into launching its own digital currency, not to project economic influence but to improve the domestic payments system and the struggling economy more broadly. Below is the concise version of the latest “Law Decoded” newsletter. For the full breakdown of policy developments over the las...
Russia houses $200B worth of crypto, Kremlin estimates
Russian citizens reportedly own 16.5 trillion rubles ($214 billion) worth of cryptocurrencies, according to government estimates. A Bloomberg report noted that Russians own about 12% of the total global crypto holdings. The crypto holdings estimates were calculated by analyzing IP addresses of some of the most significant crypto exchange users in the country along with a few other data points, said two people working with Kremlin. The crypto holdings analysis of Russian citizens is being carried out to get an overview of the crypto market and formulate new regulations. The proposals are yet to be finalized. The estimates are believed to be on the lower side, given crypto regulations are not yet clear in the country and many users prefer to use anonymous tools to carry out their transa...
Law Decoded: Russia flounders, America competes, IMF keeps fuming, Jan. 24–31
One of the most fascinating implications of the collision between traditional political institutions and the crypto space is how it can reveal the glaring lack of cohesion within power systems that otherwise look monolithic. Digital assets reside in a parallel policy dimension where neither a centralized consensus nor a clear rulebook exists, leading to a surprising variety of voices and opinions emerging in the absence of a politically coordinated course. Last week, a rare lively policy debate broke out in Russia in the aftermath of its central bank’s attempt to promote a hardline stance on crypto. One does not often see such a public interagency disagreement on substantive issues. Below is the concise version of the latest “Law Decoded” newsletter. For the full breakdown of policy develo...
