The cryptocurrency sector is making waves in different countries and regions with its increasing population and relevance. This has led many countries to explore the possible usable features of the concept in their economies. Bitcoin is now a legal tender in El Salvador. Therefore, several other regions are also keeping an eye out for this possible option. Recently, the Russian government has also moved in favor of the use of digital currencies.
Previously, Russian President Putin had expressed an inclination towards digital assets and cryptocurrencies. However, the country has now moved to follow this lead which is a major positive development for the crypto community in the region. The Russian government is all set to approve the regulation of digital currencies at the legislative level.
The Russian government paves the way for digital assets
The developing news stories show that the cabinet of Ministers from the Russian government is lending support for projects related to crypto. This project was developed by the Ministry of Finance of the Russian government. This move indicates that the government has completely rejected the suggestion of the country’s Central Bank to put a ban on cryptocurrencies.
The announcement was made through a document that states “integration of the mechanism for the circulation of digital currencies into the financial system and ensuring control over cash flows in the circuit of credit institutions.” The cabinet now intends to have control over crypto-related flows in the banks. Thus, the proposed regulation will help the government to do so.
The Federal Government is also siding with the view of the Finance Ministry. However, the federal government will allow crypto platforms to function with a license. Also, the investors will be categorized into qualified and non-qualified classes. This will be done to safeguard the rights of Russian citizens.
In addition to this, crypto service providers will have to meet the set requirements of capital and liquidity. They will also inform citizens of the risks that are linked with the use of digital currencies and crypto assets. The Finance Ministry and Bank of Russia to draft a new crypto law. The draft of the law will be presented by February 18. The use of foreign digital asset exchanges will also be authorized to the Russian market.
The website of the Russian government states that the necessary regulatory framework will pull the sector out of the shadows. It will help investors and traders of the crypto community to carry their activities under a legal banner.
