Russia Lays Groundwork to Regulate Cryptos

Russia may soon regulate cryptocurrency.

A working group recently held its first meeting at Russia’s parliament. They have been tasked with crafting legislative proposals designed to control digital currencies in the Russian Federation.  

Lawmakers, officials and experts met at the lower house of the Federal Assembly of Russia to discuss and propose new legislation aimed at regulating the circulation of cryptocurrencies in the country, deputy speaker Alexey Gordeev, who heads of the working group, told reporters. 

He said government authorities in Moscow are aware the crypto industry is developing in Russia. As a result, he said, regulations for the sector will be introduced. 

Cryptocurrencies are partially regulated under the law “On Digital Financial Assets,” but some activities like crypto trading and taxation were excluded from the scope of the law. 

The current text fails to define terms like cryptocurrency and mining. Gordeev said these definitions must be provided. Digital currencies such as bitcoin are outlawed and cannot be used as a legal tender. But the law does not prohibit Russians from owning and transferring these assets. 

Gordeev noted staff from the Central Bank of the Russian Federation, also known as the Bank of Russia, and other officials participated in the working group’s initial meeting. Discussions are expected to continue into February, when they will prepare proposals. 

The lawmakers are also expected to review a central bank report, which will contain its perspective on the issues in detail. The bank has opposed the use of cryptocurrencies for payments, calling them money surrogates.  

“We don’t see a place for cryptocurrency in the Russian financial market,” the bank’s deputy governor Vladimir Chistyukhin said.