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Bank of Russia Hops on the Crypto Train

The country’s central bank is in the midst of suggesting a detailed framework for trading crypto – despite having an in-state crypto ban.

Russia’s chief financial regulator said that Russia can create more detailed rules for taxing digital currencies – including digital securities and utility tokens – but already has a good enough regulatory framework in order to make crypto legitimate within the country.

In the new consultative report published on Monday, digital assets may be regulated just like traditional securities, in the case when they have similar properties.

In making a new regulatory approach, the latest document proposes addressing taxation of digital assets, the legal framework required for matters including tokenizing securities, and certifying property rights upon issuing NFTs.

However, amendments to the proposed legal framework may surface if consumer risks regarding crypto arise, according to the report. The report also highlights the digital assets that are currently issued in Russia, according to the digital asset law drafted in 2020.

The report also suggests including digital assets trading into the traditional stock exchange infrastructure. The chief financial regulator writes that those who are allowed to invest in digital assets must follow the same requirements as those from traditional markets. 

In Russia, unqualified investors can access traditional securities markets within a limit of 100,000 rubles ($1,640) a year, upon successfully completing a financial literacy test.

Russia’s 2020 digital assets law marked a hardline stance from Russia, as the law banned crypto for being used as a valid method of payment – enacted since early July.

However this February, Russia’s Ministry of Finance introduced a bill to parliament to regulate cryptocurrencies – a beacon of hope for those hoping to use crypto to invest and pay for goods and services within the country.

Russia’s chief financial regulator also says that it needs to figure out a framework to allow digital assets from abroad to be traded within the Russian market.

However, the it is only considering tokens that “comply with the quality requirements” – which include having an issuer and are backed by another asset.

The Bank of Russia anticipates that it will receive comments on the new report until December 7.

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