- 19 April 2022
- Posted by: Cryptovalues
- Category: Central Banks, Cryptovalues News, World News
It seems that the diatribe between the Ministry of Finance and the Central Bank over how to manage the digital currency sector finally has a winner.
At a press conference at the end of 2021, the Governor of the Central Bank of Russia, Elvira Nabiullina, stated that banning cryptocurrencies in the country would be “quite feasible”, considering the frequent use of cryptocurrencies for illegal transactions and the significant risks for retail investors. However, the reaction of the current Security Council vice-president Dmitry Medvedev was not long in coming, stating that while he understood the Bank’s reasons, he believed that a ban would have the opposite effect.
The decision-maker, President Putin, stated that there would be competitive advantages in crypto mining in Russia due to the surplus of electricity and the expertise of the personnel available in the country.
The law that will soon regulate the sector therefore sees the Ministry of Finance as the winner, as it has managed to impose its point of view, advantaged by the evident usefulness that Bitcoin & C. have brought to the conflict.
Crypto payments will become legal, without the requirement for companies to accept them, but there will be legal boundaries for exchanges, citizens and miners to move within.
Interesting things are planned for exchanges, which will have to have a share capital of at least 30 million roubles (at the current exchange rate of around 3.3 million euros), while trading platforms will have to have a share capital of around 100 million roubles.
In addition, very strict rules have been laid down for anti-money laundering (AML) and customer identification (KYC) regulations. In addition, similar to what will soon happen in our country, a presence is required, i.e. a branch that is incorporated under the laws of Moscow.
Miners will have to be registered in a special register, with a series of accompanying legal obligations, and it seems that reference will be made to a regional dimension, more direct and closer than the current federal one.
Recall that according to data from the University of Cambridge updated in August 2021, the Russian Federation holds 11.23% of the total Bitcoin hashrate, which has grown significantly from 5.9% in September 2019. Better than Russia are the USA and Kazakhstan, considered the chosen shores for miners after China’s ban.
Regulations created, capital gains taxation will follow.