Conducting all cryptocurrency transactions through Russian banks, licensing operators of such transactions, introducing limits for unqualified investors, identifying owners of digital currencies and other measures to legalize crypto in Russia are contained in the concept of the Ministry of Finance, approved by the government on February 7 (Izvestia has the document). Now the department of Anton Siluanov, together with the Central Bank, must submit a relevant bill to the Cabinet of Ministers by February 18. According to expert data from the Ministry of Finance, the amount of funds of Russians in crypto wallets is about 2 trillion rubles, their number exceeds 12 million, and Russia ranks third in the world in terms of mining digital assets. By approving the concept, the government officially sided with those who advocated the regulation of crypto, not its ban.the experts said.
Cryptocurrency to be
The last weeks have been marked by heated discussions about the fate of cryptocurrencies in Russia. They began after the release of a resonant report by the Bank of Russia, in which the regulator called for a complete ban on the circulation and issuance of digital currencies. on the territory of the country. The radical position of the Central Bank did not find support from other departments. The Ministry of Finance has prepared an alternative conceptwhich is reflected in a letter from Finance Minister Anton Siluanov to Prime Minister Mikhail Mishustin (Izvestia has it). It indicates that the approach of the Ministry of Finance is supported by all departments, except for the Central Bank: the Ministry of Economics, the Ministry of Digital Development, the Ministry of Internal Affairs, the Federal Tax Service, the Federal Security Service, Rosfinmonitoring and the Prosecutor General’s Office.
The goal of regulation is to integrate the circulation of digital currencies into the financial system and ensure control over cash flows in the circuit of credit institutions, the letter says. The agency considers it impossible to ban transactions with crypto-currencies, since such a measure could lead to an increase in the share of the shadow economy, an increase in fraud cases and a further flow of crypto-transactions to foreign platforms.
Main innovations in accordance with the approved concept:
- Carrying out all operations with crypto-currencies through Russian banks with a universal license;
- Licensing of cryptocurrency platforms that will have “financial airbags” in terms of liquidity and capital adequacy;
- Separation of investors into qualified and unqualified with the establishment of the last limits for the purchase of digital currency;
- Identification of participants in the circulation of cryptocurrencies by analogy with the Swiss project Aximetria by collecting the following personal data: name, address, date of birth, email, phone number, passport data (including a copy of the document), photo, bank account number, bank card data that is used for crypto transactions. The IP addresses that are used to conduct transactions will also be tracked;
- Introduction of the category “digital currency exchange operator”, which can only be Russian legal entities, and the creation of an appropriate register under the auspices of the Central Bank;
- Using the “Transparent Blockchain” service to detect illegal transactions with cryptocurrencies;
- Additional requirements for foreign crypto exchanges, including the need to open representative offices in the Russian Federation and technically integrate with digital currency exchange operators;
- Introduction of an obligation for market participants to inform citizens about the increased risks associated with cryptocurrencies.
The Ministry of Finance also advocated the regulation of mining, including the definition of such activities, the procedure for registering the relevant economic entities and the procedure for their taxation. The agency noted that it is already preparing legislative proposals in this area. According to the Ministry of Finance, Russia ranks third in the world in the mining of digital currencies. Also, according to Izvestia, miners plan to prescribe the conditions for disconnecting from electricity, and Internet providers will be required to transfer data to energy companies about the location of IP addresses. miners. The State Duma sent its proposals on the regulation of this sphere to the Cabinet.
In addition, the Ministry of Finance will work out the issues of restrictions on advertising of cryptocurrencies. The ministry refers to expert estimates, according to which the amount of funds of Russians in crypto wallets is about 2 trillion rubles, and their number exceeds 12 million.
The implementation of the concept will make it possible to “whitewash” the industry and create opportunities for legal business activities, the ministry concluded..
Thus, the government in the dispute over the fate of cryptocurrencies in Russia sided with the Ministry of Finance. As Izvestia found out, on February 7, Deputy Prime Minister Dmitry Grigorenko approved the above concept and instructed the Ministry of Finance, together with the Central Bank, to submit a relevant bill to the government by February 18.
Izvestia sent inquiries to the Ministry of Finance, the Bank of Russia and the Cabinet of Ministers.
Consensus of crypto defenders
Andrey Lugovoy, Deputy Head of the State Duma Working Group on Cryptocurrency Regulation, in an interview with Izvestia, supported the government’s decision.
— In my understanding, this is a sensation. The approved concept proposed by the Ministry of Finance says that there should be a cryptocurrency. Citizens can own and dispose of it as they see fit. But at the same time, it will be legalized as much as possible, identified, and taxes should be paid on turnover. This concept is such a consensus of all crypto-defenders,” the parliamentarian commented.
The deputy called the preparation of the bill in such a short time a difficult task and promised to offer the Ministry of Finance expert assistance from the State Duma. Andrei Lugovoy noted that the deputies are developing their own amendments in parallel, but their concept is very similar to the approach of the Ministry of Finance: “The differences are only in the details.” He admitted that the ministry’s bill would be taken as a basis, and the deputies’ proposals would be introduced as amendments to it.
Izvestia asked banks with a universal license if they were ready to work with cryptocurrencies. Promptly answered only in Raiffeisenbank.
Credit institutions already have a developed system for identifying and monitoring financial transactions. Its reuse for cryptocurrency transactions is a logical move, says Kirill Matveev, head of customer happiness at Raiffeisenbank. In his opinion, despite the significant costs, the introduction of such a mechanism by the bank will take no more than a year. However, for the further development of the system, the appearance of a certified exchange, following the example of Moscow and St. Petersburg, is necessary, on which such transactions will take place and access to which will be given to authorized banks.
Binance, the world’s largest cryptocurrency exchange, supported the concept of the Ministry of Finance, including the proposal that foreign exchanges could also act as operators. Control, not a ban, will legitimize the market and create opportunities to protect the rights of investors, Olga Goncharova, director of Binance in the CIS, told GR. The concept fits into international regulation, introducing mandatory checks on the principles of “know your customer” and anti-money laundering.
The proposed concept will have a positive impact on the industry, says Janis Kivkulis, a leading strategist at Exante investment company. Cryptocurrencies are of interest to institutional investors, but without transparent mechanisms for working with a cryptocurrency fund or exchange, interaction is impossible.
Regulation can accelerate the development of the crypto market, said Alexei Tarapovsky, founder of Anderida Financial Group. Now many potential customers are scared off by cases of fraud, the possibility of administrative and criminal prosecution. After removing these barriers, the number of users will increase.
but the desire to tie customers to Russian banks and give them a monopoly position in the market is alarming, said Vladimir Gorbunov, CEO of Crypterium and Choise.com. This will close the industry that is able to create products for a global audience. The expert suggested creating a crypto-license to provide services for market participants, in addition to banks.
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