Russia to draft law on cryptocurrency regulation

The Ministry of Finance will present the draft on December 28

Ramy Caspi
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The Russian Ministry of Finance has prepared a draft law of regulation of cryptocurrencies, Finance Minister Anton Siluanov said in an interview with Rossiya 24 TV channel.

"The Ministry of Finance has prepared a draft law, currently under consideration, which will determine the procedure for issuing, taxing, buying and circulation of cryptocurrency," he said.

Bitcoin is a decentralized system based on blockchain technology, which any user can participate in, creating new blocks of the system with the help of a computing device.

In September, the senior lawmaker said he believed the work could be wrapped up before winter. The measure has faced a series of delays due, in part, to conflicting visions over the scope of the proposed laws.

The Ministry of Finance of Russia currently participates in the preparation of amendments to the Russian legislation regarding the regulation of the market of digital financial technologies.

The Chairman of the State Duma Committee on Financial Markets, Anatoly Aksakov noted that the draft law is not the latest version – the latest version will be discussed in the coming days. He expects that the adoption of the draft law on cryptocurrencies will arrive in March.

“The problem is that we already have a lot of people who acquire [cryptocurrencies] and they are deceived,” Aksakov said. “We need to give people the opportunity to work legally with it, to protect them as much as possible.”

Russian regulators had initially said all cryptocurrencies were illegal. But in October, the regulators revealed how they plan to find and tax cryptocurrency miners, as well as license them. The expected move to submit the bill also comes months after Russian President Vladimir Putin ordered new regulations to be developed around cryptocurrencies and blockchain, including rules specifically aimed at initial coin offerings (ICOs).