A (Possible) Russian Law Could Be Applied in Terms of Cryptocurrency Using: It’s Still a Draft
On 25 January 2018, the Ministry of Finance from Russia published a document on their official website related to the new law that is going to regulate the cryptocurrency usage in the country.
The official document is just a draft – yet. At the request of the President of Russia, Vladimir Putin in October 2017, the law will support the trading of crypto and fiat currencies, only if these are realized through compliant exchange platforms.
An exchange is considered to be compliant if it acts regarding the Articles 3 to 5 of Federal Law, No. 39-FZ of April 22, 1996 “On the Security Market”.
According to the published document, the trading of virtual currencies will be possible only if all the necessary information is available to the public. These include “the full name of the issuer of the tokens, the location of the permanent operating executive body of the issuer and the address of the issuer’s website”.
Also, tokens must be traded in a transparent way, mentioning the coin prices, how they were created or purchased and how they are kept. Traders will be required to disclose all the required information within 3 days before the transaction is occurred.
If this law is approved, then all the investors who do not respect the bonds listed in the document will not be able to fully benefit from the cryptocurrencies’ usage. Those who are not compliant with “On the Securities Market” regulation will need to manage transactions through a specific exchange operator and the possible amount of traded token is going to be under 900 US Dollars per offering.
The Central Bank of Russia replied that “these transactions should be permitted only with respect to token offerings”. The Ministry of Finance ensures that if the cryptocurrency trading is not regulated, the criminals will be interested in attacking it. Instead, by introducing such a law, Russia will keep under control the amount and the way digital variables are used.
Do you think that the Russian’s regulation will be too severe for traders and investors?