Russian Investors Must Pass Exams Before Buying Cryptocurrencies, Proposes Draft Law – Regulation

A new Russian law could require potential crypto investors to complete a test before being allowed to purchase digital assets above a certain limit. The authors also hope to regulate cryptocurrency mining and cut off access to cheap energy for those who mint coins in their homes.

Bill to introduce “strict regulation” to the crypto industry, strict requirements for investors

Russian lawmakers are working on a law to close regulatory gaps in the crypto space. The legislature can introduce special tests for not qualified Investors who want to buy cryptocurrencies with a total annual value of more than 600,000 rubles ($7,700). One of his supporters, deputy chairman of the parliamentary committee on security and anti-corruption, Andrey Lugovoy, told the Izvestia daily that the new law was about “strict regulation” of the sector.

The bill is expected to be introduced into the State Duma during the spring session of the lower house of parliament, the deputy noted. Beforehand, it will be discussed with relevant ministries, law enforcement agencies and market participants. All changes will be approved by a working group composed of members of the Duma and representatives of government institutions, including the Central Bank of Russia.

The monetary authority has clashed with other regulators over its tough stance on cryptocurrencies. In a recently published Consultation paper, the Bank of Russia suggested a broad ban on crypto-related activities such as issuance, trading and mining failed to win the support of the executive and legislative branches in Moscow.

New law regulating crypto mining and exchanges

Andrey Lugovoy also revealed that the upcoming law will attempt to regulate cryptocurrency mining, which is expanding in Russia, especially after the crackdown on the industry in China. In addition to businesses, ordinary people in energy-rich regions have also found an additional source of income by using subsidized electricity with crypto farms operating in basements and garages.

Electricity tariffs for these miners should be the same as for companies, the lawmaker told the publication, insisting that “ Garage mining ” with cheap household electricity should be stopped. The federal government took a step in this direction at the end of December allow regional authorities to increase electricity tariffs for residential areas if consumption exceeds a certain threshold.

The authors of the bill plan to clearly define which companies are allowed to work with cryptocurrencies. This includes authorized banks, provided they receive a special license, crypto exchanges and other digital money exchanger. Foreign-based crypto trading platforms that want to operate in the Russian Federation are subject to a “special” registration system, Lugovoy noted, without elaborating.

What do you think of the crypto regulations being discussed in the Russian Parliament? Tell us in the comments section below.

Lubomir Tassew

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens' quote: "Being a writer is what I am, not what I do." In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Photo credit: Shutterstock, Pixabay, WikiCommons