Russian Duma’s working group to address gaps in crypto regulation

abdelaziz Fathi

A working group formed by the Russian State Duma to tackle the issues of cryptocurrency regulations is set to hold its first meetings, said the head of the parliamentary Financial Market Committee, Anatoly Aksakov.

Russia

Duma Speaker Vyacheslav Volodin instructed the legislature to create a group that will see participation from outside the government bodies and the lower house of parliament. The overarching goal of the group seeks to address regulatory gaps in the industry, including the taxation of bitcoin mining, especially by miners who use cheap electricity.

Volodin pointed out that the working group doesn’t aim to prohibit the cryptocurrency, since “it is a virtual reality”. Instead, it seeks to completely legalize the virtual asset class to be subsequently controlled.

The impetus for the regulation of crypto mining is driven by mounting concerns that Russia has become a major destination for crypto miners after China’s recent crackdown.

Russian President Vladimir Putin said earlier that cryptocurrencies have a “potential future” as a means of payment. The Russian leader pointed out that crypto money finds more real-world use cases. However, Putin was less sure about the fundamentals that were driving the valuations of cryptocurrencies like Bitcoin, which is trading at a price of upwards of $57,000.

To insulate the Russian economy from Western sanctions, the Kremlin has been trying to reduce the dependence on the U.S. dollar in the country’s foreign trade. Despite being a long-term priority, Putin said Russia will be forced to rely on the greenback for some time, adding that he’s not convinced that Bitcoin can replace the buck in settling oil trades.

Russia orders public officials to declare crypto assets

Earlier in August, Putin approved the National Plan for Countering Corruption for 2021–2024, which proposed inspections of officials who are obliged to disclose their digital assets and currency. Russian officials, as well as their spouses and children, are required to report their crypto holdings to the tax authority if the total transaction amount exceeds RUB 600,000 in a calendar year.

Before that, the Russian government asked public officials who own or trade cryptocurrencies to disclose their holdings, and the first reporting deadline was June 30, 2021.

According to an order signed by Putin, Russian public officials who were required to report their cryptocurrency holdings will have their disclosures audited by the central bank and other authorities.

Within this context, Putin has instructed the Bank of Russia to cooperate with the ministries of finance and labor to propose crypto-asset inspections.

Failing to disclose data or deliberately providing false information is a criminal offence. Penalties for unreported crypto transactions include a jail term of up to three years and a fine ranging from 500,000 rubles to 2 million rubles.

In an effort to foster regulatory clarity in the Russian cryptosphere, the central bank has proposed fresh guidelines to govern market participants and floated the idea of a digital ruble.

Read this next

Institutional FX

Integral also grapple with weak FX volumes in December

Foreign exchange trading volumes dropped in December across Integral’s trading platforms as many traders were away on annual leave and currency markets saw a relatively quiet period. December volumes outpaced those of last year, though turnover is still down month-over-month.

Digital Assets

BitMEX to turn German bank into regulated crypto products powerhouse in Europe

The historic German bank is already a leader in the application of blockchain technology and offers a range of digital assets banking services, including custody, tokenization, efficient payment transactions, and regulatory secure market access.

Industry News

CryptoUK appoints Teana Baker-Taylor as non-executive director

“CryptoUK is moving the needle on policy and regulatory framework development to ultimately build trust and protect all participants, from retail investors to the crypto industry players”

Retail FX

Skilling raises €10m to expand brokerage further after triple-digit growth in 2021

“This fundraising round represents the beginning of the next phase of Skilling’s growth as we further assert ourselves in the fintech industry”

Industry News

oneZero adds two more FX veterans, Indu Maheshwari and Kevin Verardi

The news of Indu and Kevin’s appointments comes a month after Jim Sullivan was announced as the company’s General Counsel, where he will be responsible for the company’s global legal function, based in New York.

Technology

Pareto Securities goes live with Broadridge’s OMS for low and high touch agency trading

The solution combines order management, market connectivity and smart order router (SOR) components developed by Itiviti, which was acquired by Broadridge last year in a $2.5 billion deal.

Retail FX

INGOT Brokers taps Acquity and Signal Centre for MT4/5 EAs and news analytics

INGOT Brokers is helping traders cut through the noise and get a clearer picture of the emerging market trends as well as better spot trading opportunities with AI-powered signals.

Digital Assets

Can the Ripple lawsuit be traded with Wrapped XRP to circumvent XRP delisting in US?

wXRP is a derivative product that is pegged to the digital asset that the SEC claims to be a security in what has been dubbed “the cryptocurrency lawsuit of the century”.

Digital Assets

e-CNY wallet downloads swell, but actual usage disappoints

China’s central bank has released a wallet app for payments and money transfers using the digital yuan earlier this month. Although the e-CNY wallet was the most downloaded app in January, but according to a Reuters report the actual use in transactions has been far less impressive.

<