Russia's
Putin Releases Presidential Orders Paving the Way for Cryptocurrency Regulation
Russia
has finally completed its legislation for the cryptocurrency, after months of
deliberation and conflicting remarks on the subject.
Announced
by the Kremlin, Russian President Vladimir Putin released five presidential
orders, detailing the use and regulation of bitcoins and blockchain technology.
The orders themselves are quite wide and far-reaching, and effectively
communicate how blockchain and cryptocurrency users must operate within the
Russian economy.
The
news follows several oscillating viewpoints from the government insider. Last
month, Russia’s deputy finance minister suggested that it was likely that the
country would ban cryptocurrency, even though the month before the finance
minister had said that there was “no point” in banning cryptocurrencies.
The
country is following the United States, China, and South Korea in passing
legislation on cryptocurrency, all of whom who have over the last year
implement policies related to Bitcoins and Ethereum.
The
presidential orders will require cryptocurrency miners - a critical section of
the digital currency economy - to register with the Russian government so that
the government can tax whatever revenue is generated from the operation.
More
importantly, the orders delegate the task of regulation of token sales during
ICOs (Initial Coin Offerings) to Russian Prime Minister Dmitry Medvedev and
Central Bank of Russia head Elvira Nabiullina. ICOs function similarly to IPOs
(Initial Public Offerings) in the stock market, where companies share stock in
order to raise capital.
Like
the United Kingdom, Russia will also mandate the use of “sandboxes”, where
companies will have to test their products and services in controlled
environments, in order to determine their effects before being released to the
public. Several blockchain companies in the UK are already making use of these
sandbox environments.
Lastly,
the presidential orders call for a “single payment space for the member states
of the Eurasian Economic Union with the use of new financial technologies, including
the technology of distributed registries.” Russia may soon release its own form
of cryptocurrency, dubbed the “CryptoRuble”. Other members of the EAEU have
already adopted national cryptocurrencies.
Critics
of Russia’s new regulatory framework for cryptocurrency state that the 13% tax
levied on those who cannot prove that cryptocurrencies were obtained legally
will allow governments to profit from money laundering schemes and financial
crimes.
In
any case, the news of another major country adopting cryptocurrency is a move
forward for the digital currency. Countries are still experimenting with it,
and weighing options on how it ought to be implemented, but the dominoes seem
to be falling as more and more countries are passing legislation.
Money Trade Coin will bring you the
latest news in cryptocurrency and the blockchain world. Stay tuned for more
news and information on how to succeed in cryptocurrency investment.
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