Putin Urges Russia's Government to Finalize Cryptocurrency Regulations
Just like many other countries, Russia has been working on its very own set of cryptocurrency regulations for a while. Apparently, it’s taking a bit too long, since Russian President Vladimir Putin has urged the country’s Federal Assembly to finalize and publish the regulatory framework by the 1st of July, 2019.
At this time, it is known that the main aim of the federal legislation is to encourage the growth of the digital economy. Reports indicate that the framework will include articles regulating digital assets and civil settlements. Additionally, rumours show that the new laws will include government-based incentives and programs, meant to grow the Russian digital technologies market.
It is important to point out the fact that the Russian State Duma had already passed cryptocurrency regulations, back in May 2018. Back then, it was President Putin who once again, gave the Parliament a deadline for the adoption of the framework. However, due to several term changes, the framework was sent back for revision. The initial bills covered cryptocurrency trading, digital currency mining, and Initial Coin Offerings.
Putin’s initial statement concerning crypto regulations read: “Opportunities to launder funds acquired through criminal activities, tax evasion, even terrorism financing, as well as the spread of fraud schemes…We have seen how Bitcoin has transformed a payment unit into an asset, which is bought in order to obtain a high yield in a short period of time. This is the definition of a pyramid.”
Therefore, it seems like Russia’s stance concerning the crypto market has changed, since a more positive approach is now being pursued.
A few days ago, however, the Russian Supreme Court decided to update its money laundering bill, with the purpose of including the illicit use of cryptocurrencies as a money laundering offence. The change came following a recommendation given by the Financial Action Task Force on Money Laundering (FATF).
Based on everything that has been outlined so far, the Russian parliament will most likely finalize the new legislation by March. We shall then be able to learn more about the new legal status of cryptocurrencies and the afferent financial operations.