Russia may allow crypto trading in upcoming legislation

Russia may allow crypto trading in upcoming legislation

A report from local media source shared an exclusive about Russian impending bill that may allow crypto trading in the country. In May 2018, the Russian Federation parliament passed a bill banning the use of cryptocurrency for payment and trading. Money laundering and financing terrorism were the reasons cited for passing the bill roughly a year ago. In a new twist of fate, the story may be about to change for crypto traders. The bill had been lingering for some time now as it was earlier billed for March 19th at the plenary session of the state of Duma before it was postponed.

The news arrived at an auspicious time for crypto assets as Bitcoin recently surged above $10,000 for the first time since its value plummeted after the 2017 bubble. Other prominent crypto assets like Ethereum, ripple, and Litecoin also rose in value. As the cryptocurrency bill is slowly coming to fruition, a high ranking government official broke the ice and gave journalists a snippet of what to be expected of the bill. Alexei Moiseyev, Russian deputy finance minister, disclosed that buying and selling of crypto assets is the option that is likely going to be reviewed. Cryptocurrency payments are off the negotiation table.

The problem for crypto traders is far from over until everything becomes official. Many are worried crypto assets might be banned outright. According to Moiseyev; finance ministry had discussed the bill with the Russian central bank and the federal security service. Nothing has been finalized as different possibilities are under consideration. The possibilities ranged from prohibition to purchase, just like the case with foreign currency. However, payments using crypto assets is off limit. A resolution is expected to be reached before this year passed out.
The Russian Federation is under pressure to pass the bill to meet up with recommendations mandated by financial action task force (FATF). Sooner or later, crypto assets traders are going to learn their fate. According to gossip that went mainstream earlier this month; the state Duma was flirting with the idea of imposing administrative penalties for cryptocurrency miners using open blockchains. In essence, anything mining and exchanging cryptocurrency will be banned. However, analysts who weighed in on the matter claimed that an outright ban on cryptocurrency is highly unlikely especially with recent developments.

If the Russian government decides to allow crypto assets trading, taxing cryptocurrency trading becomes a viable option, and that could help with state budget financing. Another development that may prove a huge boost for crypto markets in Russia is the unprecedented institutional support cryptocurrency is gaining. Bitcoin open interest recorded a remarkable 643 contracts in a single day bringing the record to an all-time 5,311 contracts as at June; 17. More so, earlier this week, social media giant Facebook announced plans to launch owned version of crypto assets in 2020. A reputable company like Facebook joining the crypto industry is a huge boost. That alone can be a game changer for cryptocurrency industry worldwide.


photo source: © by FedotovAnatoly


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