Authorities in Russia are now ready to relax restrictions on cryptocurrency payments and allow the exchange of one cryptocurrency for another. That’s according to the latest amendments to the
Authorities in Russia are now ready to relax restrictions on cryptocurrency payments and allow the exchange of one cryptocurrency for another.
That’s according to the latest amendments to the “digital currency” bill greenlighted to advance further ahead of the September deadline for adoption.
Russia’s long-awaited draft law “On Digital Currency and Digital Rights” has been approved for second reading by the key Committee on Financial Markets at the State Duma, the lower house of parliament.
The revised legislation now suggests expanding the list of cases in which cryptocurrency can be used as a means of payment in the country, local media unveiled on Wednesday.
The document will allow investors to use digital coins to buy securities, although only outside public offerings, a source familiar with the bill’s latest version told the Interfax news agency.
It will also permit the swapping of different cryptocurrencies and legalize the payment of transfer fees on the various blockchain networks with crypto, the report further detailed.
The ruble, including in its upcoming digital form, is still the only legal tender in Russia. But the original text of the law featured two exceptions to the ban on “money surrogates.”
One allowed for mining rewards to be paid in cryptocurrency, and the other authorized its use for international settlements in foreign trade under sanctions. The amended bill now reads:
“In the Russian Federation, the use of digital currencies and digital rights is permitted as a means of payment … for securities, other digital currencies, or other digital rights.”
While the previously established criteria for admitting cryptocurrencies to the regulated Russian market remain unchanged, lawmakers are now opening the door for more coins.
In general, to be allowed to circulate in Russia, a crypto would need to have had an average market cap of more than 5 trillion rubles (over $65 billion) over the past two years.
It would also be expected to have an average daily trading volume of above 1 trillion rubles ($13 billion) during the same period and at least five years of trading history on a licensed foreign exchange.
Currently, only the likes of Bitcoin (BTC) and Ethereum (ETH), the two cryptocurrencies with the largest capitalization, can meet these requirements.
Under the updated law, major stablecoins like Tether’s USDT and Circle’s USDC may not even be recognized as digital currencies, as these have been defined as ones without an obliged issuer.
At the same time, a newly added provision empowers the Central Bank of Russia’s Board of Directors to let in cryptocurrencies that do not meet the three listed criteria.
Furthermore, the operators of trading platforms have been authorized to offer professional investors access to virtually any cryptocurrency without prior consent from the CBR.
Restrictions remain in place for non-qualified investors, however, who will be able to purchase only the most liquid coins whitelisted by the monetary authority.
It was previously announced that they will be permitted to spend up to 300,000 rubles (less than $4,000) on crypto annually and through a single intermediary.
Nevertheless, the new legislation will expand investor access to cryptocurrencies, as currently, only “highly qualified” investors can legally buy digital assets in Russia.
The comprehensive framework also introduces a licensing regime for service providers in the space, such as exchanges, brokers, trustees, and depositories.
Brokers and asset managers have now been allowed to transact with foreign exchanges in order to connect the Russian crypto sector with the global market.
This was announced by the Chairman of the financial markets committee Anatoly Aksakov, who confirmed the approval of the draft law in a post on Telegram.
Bill No. 1194918-8 was initially supposed to enter into force by July 1, but its adoption was delayed by multiple proposals for amendment, and its enforcement was eventually postponed until September 1.
To become law, it still needs confirmation from the Federation Council, the upper house of parliament also known as Russia’s senate, as well as President Vladimir Putin’s signature.
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