Cryptocurrency turnover: legalization or prohibition

Sep, 24 2019

Since May 2018 within the bill on “Digital Financial Assets” (DFA) the issue of legalization or absolute prohibition of cryptocurrency turnover in Russia is expected to be considered. The bill was approved by the Government in first reading, but the key issue in the run-up to the second reading is the issue of financial institutions’ ability to work with cryptocurrency, including organizing its exchange for Fiat money (Fiat money is a currency without intrinsic value that has been established as money, often by government regulation).

Today Russia has an obligation to the Financial Action Task Force (FATF), an Intergovernmental organization struggling with money laundering to regulate the sphere of cryptocurrencies by law. Both options for solving the issue of (legalization or absolute prohibition) will suit FATF. According to Russian Prime Minister Dmitry Medvedev’s assignment the bill on “Digital Financial Assets” should be adopted by November 1, 2019.

Anatoly Aksakov the head of the state Duma Committee on the financial market, mentioned that the bill is almost ready and the decision on its adoption or rejection will take no more than two weeks.

When considering this issue, The Central Bank of Russia (CBR) firmly stands at the position of a complete ban of cryptocurrency turnover, some government officials – at the position of its legalization.

It is expected that the meeting with the participation of the Minister of Finance of the Russian Federation and other parties concerned in resolving the issue should take place in the nearest future.

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