Russia Takes a Major Official Step Regarding Cryptocurrencies! Officials Announce!

Russia, where the use of Bitcoin (BTC) and cryptocurrencies is very high, continues to take regulatory steps.

While work continues on draft legislation to regulate cryptocurrencies, Russia will restrict cryptocurrency trading to only licensed brokerage firms.

Accordingly, the Russian government has approved a bill that will allow the trading of cryptocurrencies only through locally licensed brokerage firms, significantly limiting retail access.

The Ministry of Finance announced that the government has approved a series of draft laws on the legalization of cryptocurrencies and their circulation in Russia.

The Ministry of Finance states that under the new regulatory framework, trading cryptocurrencies without a regulated intermediary institution will be prohibited.

The approved bill will tighten government oversight of crypto assets while maintaining limited access for unqualified investors and wider access for qualified investors.

At this point, individual investors will have to pass an exam and will be allowed to purchase a maximum of 300,000 rubles ($3,700) worth of “the most liquid cryptocurrencies” per year through a single brokerage firm.

The Russian Central Bank will determine which cryptocurrencies are suitable for purchase by investors. While residents will still be able to buy cryptocurrencies from abroad, they will be required to report these transactions to the country’s tax authorities.

Critics of the bill argue that the regulations could backfire. Sergey Mendeleev, founder of the digital payment platform Exved, argues that the new situation will resemble a casino, where people will not buy less cryptocurrency, but instead move their activities to online and underground channels outside of state control.

*This is not investment advice.