Russia’s Upcoming Bill Will Impose Strict Regulations on Crypto, Claims Central Bank’s Official
The Russian government passed a bill on digital assets back in 2018, but the bill has not yet taken practical shape. According to the recent statement given by the central bank’s official, the new amendment in the bill will not allow circulation and issuance of cryptocurrency, and people will have to face strict consequences in case of violation.
The central bank of Russia is trying to ban the usage of cryptocurrency in the country, but the finance ministry of the government shows some interest in legalizing the cryptocurrency. However, clear-cut rules and regulations are not yet decided. Since January 2018, there is a lot of uncertainty regarding digital assets.
The head of the legal department at Russia’s central bank, Alexey Guznov, explained in detail about the new amendment law in an interview with local news outlet Interfax.
Legal Liability for Violation of Law
According to Guznov, the coming bill will ban the issuance of digital currencies as well as the circulation of digital assets. However, the law that appeared on the screen in 2018 did not ban on the trading of cryptocurrency.
He said:
‘’In terms of the functioning of the financial system and consumer protection system, legalization of the issuance and facilitating the circulation of cryptocurrencies is an unjustified risk. As such, the bill explicitly prohibits emission and organization of cryptocurrency circulation, introducing legal liability for violating these rules.’’
Financial Firms Cannot Issue Cryptocurrency
He also claimed that financial institutions cannot be able to issue digital currencies after the implementation of the new law. However, citizens can hold digital assets per the new amendment document.
‘’If a person who owns, for example, Bitcoins, completes a transaction in a jurisdiction that does not prohibit this, we are unlikely to be able to regulate that,’’ he added.
The bill about digital assets entitled ‘’On Digital Financial Assets’’ first appeared in January 2018 but still not adopted by the government institutions. However, President Vladimir Putin stressed to implement law twice. According to sources, the Bank of Russia is considering to launch its digital currency soon
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