Russians Drafting a Roadmap to Regulate Crypto

Russians Drafting a Roadmap to Regulate Crypto, instead of Banning it. Let us find out more details about this new draft regulation.

Introduction

Recently, we’ve seen news talking about the plans of the Russian government to ban Cryptocurrencies. Unsurprisingly, this decision got stern criticism from various influential people from Russia and from outside of Russia. Tech CEOs and Leader of Opposition in Russia was also against the proposal of the ban. Now we see the Russian government deviating itself from the initial plan of banning Cryptocurrencies to favour Crypto regulations.

Background

The Deputy Prime Minister of Russia, Dmitry Chernyshenko, approved a rough framework for Crypto regulation in the Country. The road map for this Regulation will regulate Cryptocurrencies until the end of the year 2022.

Parallels to Indian Crypto Regulative strategy

Initially, just like India, the central bank of Russia was hostile to Cryptocurrencies. The central bank wanted a complete ban on cryptocurrencies. Naturally, this news sent Cryptocurrency values tumbling downhill.

The source or the news

Russian Newspaper outlet, RBC reported the issue, citing an anonymous source that is working in the group drafting the Regulations.

The Finance Ministry of Russia was however, in favour of Crypto regulations. The Finance ministry made a draft regulation and submitted it to the authority.

As per the road map, the draft regulations will tell how Cryptocurrencies will function in Russia. It talks about the identification of customers, liability for violations, and possible obligation to register cryptocurrency trading platforms as a legal entity in the country.

The source’s comments

The source in his statement to RBC said that “The participants analyzed international experience and developed a consensus: the infrastructure of the cryptocurrency market contains advantages and certain risks, therefore it is reasonable to implement the concept of a regulatory and restrictive regime, rather than a complete ban. The complete ban is impossible and will entail a switch to the shadow market.”

Slight disagreements

However, as reported by Sputnik, the central bank of Russia and the finance ministry are not on the same page. The central bank does not agree on all aspects of the proposal.

The central banks is against the involvement of banks and financial institutions with Cryptocurrencies, citing financial stability concerns.

Furthermore, the bank warned that investors are at a risk when investing in Cryptocurrencies. They hold an illusion of security and safety which isn’t actually guaranteed by the government of Russia.

Conclusion

Russians Drafting a Roadmap to Regulate Crypto, instead of Banning it. Hope you found this article to be informative and intriguing. If you liked reading this article and would like to read more articles like this, do visit our website. Also, if you want to support us, please consider subscribing.

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