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- Ongoing issue of circulation of virtual currencies and mining of such assets in Russia remains a talking point for quite some time now.
- The document on “virtual currency” initiates the notion of professional and non-professional acquirers and more.
- As per some specialists, the doc will offer fresh chances for miners who are required to transition out of the gray zone.
Detailed Regulatory Framework
The ongoing matter of virtual currencies’ circulation and their mining in Russia remains a hot topic for quite some time now.
Draft legislation on regulating circulation of virtual assets in Russia, finalized by Finance Ministry, offers a rigorous structure, and for the initial time, acknowledges cryptocurrency mining in depth, as per a report by a domestic Russian news agency.
Specifically, the document on “Virtual Currency” initiates the concept of professional as well as non-professional buyers and a requirement to evaluate products, mining and rules of trade.
Specialists feel like documents provide fresh windows who are required to transition out of the gray zone. On the other hand, a few think that it has the potential to push investors out of the illicit market,” and that process for trading operators is a bit too much.
Also Read: 20% of American adults have invested in, traded or used cryptocurrency
Crypto As A Mode Of Transaction In Russia?
As per the draft law, virtual currency can be accepted as a mode of payment, which is not a financial unit of Russian Federation, and an investment. Interestingly, Russia wasn’t looking for banning cryptocurrency but sure was looking to put regulations regarding circulation of virtual assets.
Russia’s legit organizations are the only ones that might assert to be both operators. For acquiring a license to operate in Russian Federation, foreign digital asset exchanges should set up an economic entity in the nation.
Russian Federation has opted to go down the road to legalize crypto assets as well as their exchanges. With this, some witness Russia as an appealing jurisdiction for crypto mining due to reduced cost of power and that further legalization of status would intensify the demand for this activity.
Only time will show whether or not the attempt will assist the development of a latest key organization in crypto industry, and make it attainable for an elevation in investment in the space.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
