Posted 7 months ago | by Ben Armstrong
Russia Puts More Regulations on Crypto – Exchanges May Suffer
In July 2020, President Vladimir Putin signed the law “On Digital Financial Assets”, marking the first official legislative document for blockchain and crypto transactions in Russia.
In the latest announcement from the Ministry of Finance, an amendment regarding the law has been submitted for approval, which is expected to come into effect next January.
In the newly proposed amendment, stricter obligations will be applied upon crypto exchange activities, exchanges and traders, in an effort to fight against crypto-related illegal acts such as money laundering or tax evasion.
Russia is Looking for More Crypto Control
Specifically, all crypto exchanges with an accrued wallet balance exceeding 100,000 rubles must deliver an annual transaction report to tax authorities. Companies that fail to do so may receive heavy punishments, according to the new regulation.
In particular, they might have to pay a fine of 30% of their tokens and even be convicted as criminals and sent to prison for up to 3 years.
Evidently, Russia is among some most active nations to work on completing a legal framework for crypto exchanges. However, it seems that the country is moving against the favor of this new type of digital assets.
In a speech to RBC, Anatoly Aksakov, a representative of the State Duma Committee on Financial Markets, bluntly said crypto market and any related businesses are exceptional difficult to be put under law enforcement.
He even used the word “impossible” to describe regulations, and it appears that more regulations might be coming.
Russian authorities are taking steps to correspond to those events. Recently, the website of Binance, one of the largest global crypto exchanges, appeared on the blacklist of the Russian telecom regulator Roskomnadzor.
Responding to this report, Binance said in a public announcement, that they had received no prior notification from Roskomnadzor, and they were seeking legal advice. Binance also ensured their activities were completely compliant with Russian regulations and all Russian users’ rights would be guaranteed.
Until now, Binance’s website can still be accessed by Russian users with no limit, though its URL is found on the Roskomnadzor’s blacklist.
Regardless stringent moves from the government, crypto exchanges show no hesitation to enter Russian market. Another crypto giant, Huobi Global, declared their plan to launch a mobile application in Russia to expand and accelerate transactions for domestic users.
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