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The latest cryptic comments from Russia are not good. While some industry regulations are being examined, the authorities believe that there is no room for virtual currencies until a clear guideline is developed.
Russia has a very volatile relationship with cryptocurrencies. One day you feel that the encryption is expanding in the country, next week you hear that Bitcoin ATMs have been seized in various parts of the country. This latest development has raised concerns as cryptocurrencies have not effectively been banned in Russia.
Hope through regulations in Russia
There were some cases that gave hope to the enthusiastic crypts. The country's authorities are trying to regulate aspects of the sector by imposing Know-Your-Customer (KYC) requirements for selected cryptographic transactions. The financial authorities are also trying to track down Bitcoin transactions in an effort to try to prevent fraud and terror funding
Furthermore, a draft law states that encrypted transactions can only be completed by a previously authorized authority . While these strict regulations can be seen in a negative light, they show that the country is looking at a future with crypts in it.
However, President Putin's special representative on digital and technological development, Dmitry Peskov, has given an update that may delay any celebratory dance. Sputnik News recently reported that Peskov said:
The emission and circulation of cryptocurrency can not be permitted now. This contradicts the basic function of the state. Consistency is important. If we adopt a draft legislation on the principles of working with cryptocurrency on a general level, then we can discuss the implementation of these principles in ordinary life. But it is wrong to go the other way.
Bill in the pipeline
While the definitions and regulations of the industry are still very much in the air, steps have been taken to achieve a certain level of clarity. Three draft laws were previously presented to the lower house in the country with the second reading scheduled for the end of the year. Whether these are accepted or not by law should determine the future of cryptocurrency in the country.
Russia's Deputy Minister of Finance Alexei Moiseev also suggested that the extraction of cryptocurrency should be considered a taxable activity. Likewise, Iran has recently declared crypto mining in the country as a legal industry. This move, combined with several other factors, has also caused a substantial increase in the price of Bitcoin in the country.
Peskov's comments arrive just a day before the Eur Economic Forum (EEF). The event, which aims to encourage foreign investors to contribute to the Russian Far East region, is scheduled to take place between 11 and 13 September.
Do you think that cryptocurrency has a legal future in Russia? Let us know in the comments below!
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