Russia recently implemented a law limiting the number of cryptocurrencies bought by its citizens following legislation regulating its use. The Ministry of Finance sponsored the legislation and publicly stated that it supports Bitcoin and other digital assets.
The country placed various limitations on the transaction, including Bitcoin, limited to $ 7,700 annually. Russian citizens who intend to invest in Bitcoin will be limited to the purchase limit and undergo various demanding procedures that evaluate their knowledge of their crypto purchases. This move could allow the country to reduce crypto scams.
The legislation suggested that potential investors will be required to highlight their knowledge of the digital assets before purchasing the desired assets. The country also imposes tests that will decrease their Bitcoin value to $650 each year if they fail the tests.
Russia’s efforts to regulate crypto transactions in the country
The legislation concludes the struggle between Russia’s high financial institutions tasked with creating methods to control crypto transactions. President Vladimir Putin requested the sectors develop clear guidelines on the crypto transaction. The President reiterated the benefits of mining cryptocurrencies. At the same time, Sergey Katyrin, Russia’s chamber of commerce chairman, requested the finance ministry to introduce cryptocurrencies as a compelling opportunity instead of terming it a grey zone.
The Central Bank of Russia suggested that the country develop a bank that only deals with cryptocurrencies and related transactions and predicts a threat to Russia’s financial stability. The Ministry of Finance began developing measures on the transaction of crypto assets following the Central Bank of Russia’s recommendation.
Russia’s final decision on the implementation of cryptocurrencies and digital assets
The financial authorities resolved to implement rules that provide the way forward on cryptocurrencies following the President’s request. The focus on cryptocurrencies follows the increased adoption rate in neighboring countries. However, recent studies highlighted that the country’s crypto wallets are inactive; thus, the implementation might not be helpful.
In 2021, Russians authorized the investment in crypto assets after the President executed a law regulating assets transactions. However, the implemented law did not issue a limit on the spending of the currency, thus altering the field entirely.