Russian Deputy Finance Minister: Bitcoin will be legal and mining needs to be regulated

nBankruptcy comment: Russia’s deputy finance minister recently publicly told the media that it would provide clear guidance on Russia’s cryptocurrencies, such as legalizing the sale of cryptocurrencies and regulating mining practices. And Russia’s finance minister said the related regulatory bill will be ready by the end of 2018. While all of these arguments sound very positive, we will soon know whether Russia is really ready for regulatory oversight given that there are only two weeks left this year.n
nTranslation: Inan
Alexei Moiseev, the Russian deputy finance minister, was reported to have emphasized that the purchase of bitcoin and other cryptocurrencies would be legal in Russia.n
Moisheyev revealed to RT that the Russian government will not treat trading in encrypted currency as illegal or punishable. However, he also emphasized that it would adopt a stricter stance on mining, implying that only “legal entities and individual entrepreneurs” would be allowed to register as cryptocurrency miners. Other people engaged in cryptocurrency mining may be convicted.n
It is reported that Moisheyev said:n
n”Penalties will be different, mainly administrative penalties, but if anyone creates cryptocurrencies for settlement, he will be subject to criminal sanctions.”n
nHe also pointed out that operators who exploit cryptocurrencies for the purpose of setting up pyramid schemes or tax avoidance are also subject to criminal penalties.n
It is noteworthy that Moisheyev emphasized that the trading of Bitcoin and other cryptocurrencies will be considered lawful in Russia. Although there are no rules or laws on Bitcoin transactions or mining in Russia at present, President Putin has issued a directive to promote the establishment of a regulatory framework for ICO and cryptocurrencies mining in Russia. It was reported that during a meeting with the leading Russian financial regulator in mid-October, Putin agreed to formally monitor the exploitation and supply of cryptocurrencies such as Bitcoin.n
Russian Finance Minister Anton Siluanov said at the time:n
n”We agree that the state should control the issuance and circulation of cryptocurrencies, and I will not disclose specific information at this moment, but generally speaking, we all agree that the state should play a leading role in this process and be governed by legislation.”n
nRegulators are also working on plans to limit purchases of cryptocurrencies. The earlier draft provided for a maximum purchase of 10,000 rubles ($ 1,750) per person, but was also considering setting the ceiling at 600,000 rubles ($ 10,370).n
In addition, Sirluanov has confirmed that Russia’s bill to manage cryptocurrencies “will be ready by the end of 2018”.n

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