Federation Council of Russia Takes Steps to Implement Crypto Regulation

  • The group forming the regulation of cryptography was created by the Russian Federation Council
  • The expert task force will take on the task of crafting an additional prescription for the country’s growing crypto ecosystem
  • Using digital assets as payment is prohibited, but stopping other crypto-related operations remains a moot point.

Crypto regulations are important and also of concern to many. However, as governments around the world scrutinize the cryptocurrency industry, experts believe these guidelines need to be comprehensive, consistent, and coordinated. In recent developments, the Federation Council of the Russian Legislature was found forming a working group. The group should in particular propose such a complete decree for virtual currencies.

Additionally, the announcement revealed that the group will be comprised of officials from multiple government departments and agencies as well as members of the growing national digital asset industry.

Preparing for New Crypto Regulations in Russia

The Federation Council of Russia is the upper house of the nation’s parliament. In the current scenario, he is working on setting up an expert task force that will take on the task of crafting an additional ordinance for the growing crypto ecosystem in the country.

Indeed, these assets are now only partially regulated by the law “On digital financial assets”. And Russian officials have recognized the need to adopt more guidelines to cover various aspects such as traffic and taxation.

Who would make up the body?

The established body will include representatives from the Ministry of Finance, the Ministry of Economic Development, the Russian financial watchdog, Rosfinmonitoring, the Federal Tax Service, the Ministry of Digital Development and other enforcement agencies of the law. Nikolai Zhuravlev, the deputy of the organization also announced during the Finopolis 2021 forum that members of the digital crypto industry will also be invited to join the body.

Should Russia ban operations with cryptocurrency?

During Zhuravlev’s participation in the event dedicated to innovative financial technologies, he pointed out that the use of digital assets as a means of payment is prohibited in Russia. Later, Zhurablev also pointed out that the prohibition of further operations related to these assets is still a debatable question and difficult to answer.

Following an earlier statement by Yelena Perminova, First Deputy Chair of the Federation Council’s Budget and Financial Markets Committee, the legislative body is currently analyzing the presence of crypto in the Russian financial market. Moreover, Perminova had also mentioned that the chamber intended to seriously consider the matter.

Later at the end of last month, the State Duma, the lower house of the country’s Federal Assembly, revealed that it was setting up a working body made up of lawmakers. This body will attempt to answer outstanding questions regarding the regulation of decentralized crypto assets in the Russian Federation. At the time, Anatoly Aksakov, the head of the parliamentary committee on financial markets, announced that the group would hold its first rally in the near future. Indeed, its members would try to clarify crypto-related issues, including the legalization of digital currency mining and the introduction of taxation of digital currency holdings and profits.

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