Russia: Review of Crypto Bill Limits Crypto-Fiat Transactions over $9.6k

Forklog Reports

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The government of Russia has been involved in the preparation of a draft bill review “On Digital Financial Assets,” which detail that the cryptocurrency exchange for fiat for around $9,600 or rather the foreign equivalent which is subject to the mandatory regulation in the currency. This is according to Forklog which is a local crypto news outlet on 13th April.

However, this review has not yet been given to the State Duma for presentation. This is as it was reported by Anatoly Aksakov who is the head of the committee involving financial market. Forklog also noted that an amount more than 600,000 rubles have already been tracked to ensure that terrorism financing and money laundering case is not there. The Russian banks have been involved in the exercise.

Therefore, the previous version of “On Digital financial Assets” draft bill, which was presented to the State Duma in 2018 March 20, has the definition of digital tokens and crypto as those digital financial assets which are only allowed to trade in the crypto exchanges which are authorized. This also involved the details regarding the KYC regulations meant for the ICO. Additionally, the March 20th bill requires the various user accounts linked to crypto exchanges to have the AML and counter-terrorism financing verifications.

Therefore, the various operators of crypto exchanges should adhere to the Federal Law 115-FZ article 5. Failure to this, they might lose their license. This is according to the report by the Russia federal financial service.

The president of the Russian Association of Cryptocurrency and Blockchain (RACIB), the new set bill requires the crypto transactions and activities to be under the bank and the federal financial monitoring service control. Therefore, this move might subject the crypto miners to migrate to the countries which are more “crypto friendly.”

Due to the fact that the bill described the crypto as property and not a legit payment system in Russia, the government has also declared that they might begin taxing the crypto transactions.

According to Teymuraz Vashakmade, a personal income tax of 13% might be imposed on the crypto traders, and this might lead to the anonymity of the crypto traders:

“If the person themselves does not announce that they bought and sold Bitcoins, then no one will know about it, so many people will not voluntarily declare such income.”

Finally, RACIB stated that Crypto Ruble which is a state-issued cryptocurrency might be launched in 2019.

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