Russian parliament to vote on a proposed cryptocurrency and digital assets law

Russia, known for its previous hard stand against bitcoin and cryptocurrency, finished drafting a regulatory framework around cryptocurrencies and digital assets. Russian officials pointed out that: ‘rules for the circulation of cryptocurrencies and control measures will minimize the threat to the stability of the financial system and reduce the use of cryptocurrencies for illegal purposes’

Russia will recognise cryptocurrencies and will allow trading, mining, custody or exchange of digital assets and cryptocurrencies. The new Russian law will ask digital asset providers (cryptocurrency exchanges, custody services and others) to register for licenses. Liquidity funds will be required, and all transactions bigger than $8.000 will need to be reported.This will increase the level of user protection around the digital assets industry.

Adoption of the regulation will also create the regulatory framework for Russia’s bitcoin mining industry. This industry became significantly larger last year after China decided to close down mining facilities in their country. Russian parliament will vote on the proposed regulation later in February.