Russia proposes legalization of crypto as legal tender in final draft law

The Russian Ministry of Finance presented the final bill on cryptocurrency law on Friday. Bitcoin traders, now operating in an unregulated gray area due to the title of the Digital Currency Bill, could directly benefit from a clearer legal framework for cryptocurrency exchanges, according to Kommersant.

In addition, the proposed law stipulates conditions for companies wishing to manage digital asset businesses in Russia, such as: B. Certification, identification and accounting processes.

Crypto as a legalized investment

According to this proposed law, digital money that is not Russian currency can be accepted as a means of payment. In addition, cryptocurrencies in the account are recognized as legal investment instruments. Companies with digital assets must comply with the rules set out in this law.

For example, to obtain an operating license, an exchange operator must have a working capital of at least 30 million rubles ($36 million). In addition, at least 120 million dollars or 100 million rubles must be invested in operators of virtual currency trading platforms to get started.

On the other hand, the act required strict regulations for both companies, including the establishment of separate structural units and the presentation of annual reports, requirements for regulatory bodies, internal audits, and controls. Some of the available limitations are said to be too onerous and impractical for digital asset owners.

Friday’s bill was even introduced when the government introduced a bill to the State Duma that would allow a tax on digital asset transactions. For Russian companies that own digital assets, the income tax is 13%, while for international companies the rate is 15% if the government approves the document.