Russian Ministry of Finance submits bitcoin law

According to a press release published on Monday, the Ministry of Finance has submitted a bill to parliament to regulate bitcoin in Russia. With this, the Ministry ignores the concerns of the Russian central bank, which wanted to ban bitcoin.

The bill qualifies bitcoin as an investment object. It will therefore not become legal tender as in El Salvador.

The proposal comes after a dispute between the Ministry of Finance and the Russian central bank. The parties have different views on the future of bitcoin. The Ministry strives to place bitcoin in a legal framework, while the central bank wants to ban bitcoin. The central bank also sees no point in bitcoin mining.

Russian President Vladimir Putin seems to think otherwise. Because of the large energy surpluses, he sees a competitive advantage in mining bitcoin.

The bill submitted by the Ministry of Finance contains several restrictions for Russians who want to invest in bitcoin. You can see these restrictions, among other things, in the stricter Know-Your-Customer obligation. Also known in the Netherlands as the know-your-customer rules. These rules prescribe that bitcoin companies must obtain the necessary information about their customers.

The bill shows that bitcoin companies must inform their customers about the possible dangers of investing in bitcoin. Clients will also have to take a knowledge test before they can invest at all. What exactly this test will look like is still unknown. It is known that the outcome determines the trading limit for the customer.

When the customer successfully completes the test, he or she will be able to purchase approximately $7,700 worth of bitcoin per year. However, if the customer fails the test, he or she will only be able to buy about $650 worth of bitcoin per year.

The bill also introduces restrictions on bitcoin deposits and withdrawals. It seems to be a disguised ban on the use of non-custodial wallets. In all probability, customers of bitcoin companies are not allowed to keep their own bitcoin.

Furthermore, the bill lists various requirements that bitcoin companies will have to meet in the future.

The Russian bill seems to reveal a global development. Bills are being introduced in more and more countries worldwide to regulate rather than ban bitcoin. For example, Ukraine recently regulated the use of bitcoin and India also seems to be opting for regulation.

Would you like to read more about the possible benefits for Russia when mining bitcoin? Read more here.??

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