The Ministry of Finance of Russia in a face-off against the country’s Central Bank has formally introduced a bill that proposes to regulate digital assets instead banning them.
The Ministry introduced a draft of the federal law “On digital currency” to the government. This stage of the legislative process precedes the bill’s introduction to the parliament for consideration.
The agency cited the “formation of a legal marketplace for digital currencies, along with determining rules for their circulation and range of participants” as the rationale for the initiative. Emphasizing that the bill does not seek to endow digital currencies with legal tender status, its authors define cryptocurrencies as an investment vehicle.
The bill proposes a licensing regime for the platforms facilitating the circulation of digital assets and stipulates sensible, risk management, data privacy and reporting requirements that such operators would be subject to. Purchasing and selling crypto legally would only be possible via a bank account, and it is proposed that both crypto platforms and banks introduce Know Your Client procedures.
The legislation also requires digital asset operators to inform retail customers of the risks associated with crypto trading. Individuals would have to pass a test assessing their knowledge of crypto investment practices and risk awareness.
