Russia Proposes Legalizing Crypto as Legal Tender in Finalized Bill

• Digital asset enterprises must abide by the rules laid forth in this legislation. 
• An exchange operator must have a minimum of $36 million in operating capital.

On Friday, Russia’s Ministry of Finance filed a finalized bill on cryptocurrency legislation. Bitcoin miners, who are now operating in an unregulated grey area due to the bill’s title “On Digital Currency,” might directly benefit from a more defined legislative framework for exchanging cryptocurrencies, as reported by Kommersant. Additionally, the proposed legislation establishes conditions for companies that want to operate digital asset firms in Russia, such as certification, identification, and accounting process.

Crypto as Legalized Investment

Digital money may be accepted as a form of payment that is not the Russian monetary unit, according to this proposed legislation. Further, cryptocurrencies are recognized as legal investment instruments in the bill. Digital asset enterprises must abide by the rules laid forth in this legislation. For example, to get a functioning permit, an exchange operator must have a minimum of 30 million rubles ($36 million) in operating capital. In addition, at least $120 million or 100 million rubles must be invested in a virtual currency trading platform operator to get started.

On the other hand, the measure imposes strict regulations on the two operations, including forming a distinct structural unit and submitting annual reports, requirements for management bodies, internal audits, and control. It has been argued that some of the restrictions at hand are overly burdensome and cumbersome for digital asset owners.

Friday’s bill was introduced even as the administration filed proposed legislation to the state duma that allows for a tax on digital asset transactions. For Russian enterprises that possess digital assets, the income tax rate will be 13%, while the rate for international corporations would be 15% if the government approves the document.