March to Regulating Cryptos Continues in Russia

Russia continues to move closer to finalizing how it will regulate cryptocurrencies, with several new developments occurring this week.

These developments include the country’s Ministry of Finance announcing that the preparation of a draft law to address the space has been completed. Also, cryptocurrency miners are meeting to address how their area should be regulated.

Finance ministry

Russian Finance Minister Anton Siluanov said in an interview with a local media outlet that the ministry had prepared a draft law of regulation of cryptocurrencies. It specifies the procedures for issuing, taxing, buying and circulating cryptocurrency in the country.

As part of that interview, Siluanov made it clear that he thought that crypto trading should be reserved for professionals, not amateurs, such as the so-called retail traders who currently dominate the space. He reportedly said:

“Professional market participants should work with crypto-currencies, not ordinary people.”

The law could also affect how to tax cryptocurrencies. Calls have been for cryptocurrencies to be defined as “other property” for tax purposes, which is the case in the U.S.

Officials have set Dec. 28 as the date to officially introduce the plans to the Russian legislature. The next step is for them to take effect early next year. Some say this could happen as soon as February.

ICOs are a major focus

Russian President Vladimir Putin ordered that state finance officials come up with regulations for cryptocurrencies in October. Of particular issue to Putin are initial coin offerings.

The nation wants to take care that ICOs are allowed to flourish and not be taken advantage of by bad actors. Officials seem to be in agreement that rules need to be in place that prevent scammers from taking advantage of citizens, while also not putting up obstacles for those wishing to hold the offerings.

Miners busy too

Miners in Russia are also in discussion over how their activities should be regulated. Miners from more than a dozen countries are coming together this week to present to parliament the basics about how cryptos are mined. They also are expected to present their ideas about the best ways to regulate their activities.

Another issue for miners relates to how they should be taxed. There are calls for them to be taxed at higher rates.

In October, we told you about Putin asking the government and the central bank to implement changes in legislation that would stipulate that cryptocurrency miners be registered and taxed.