Russia introduces plan to regulate cryptos

The Russian government has accepted a system for laws regulating cryptos. A said goal of the new policy is to integrate digital tokens into Russia’s financial system while guaranteeing the rights of private investors and preventing digital assets from being used to finance crime.

On Tuesday, Moscow’s official press service said in a statement that the government has decided the fate of virtual currencies in Russia. The circulation of such financial assets will be regulated by the state with strict obligations for all partaker of the professional market with an emphasis on safeguarding the rights of private investors.

The statement added that when all the regulatory mechanisms are in place, cryptos will be effectively integrated into the existing financial system. In addition to dividing investors into the categories unqualified and qualified, the plan envisages heavy regulation of crypto exchange platforms and mechanisms. Thus, the regulation is set to eliminate one of the main benefits of the digital currencies – anonymity – as people trading in them will be needed by lay to properly identify themselves.

Trading real currencies for cryptocurrency will be allowed only through ‘organizers of the systems of digital exchange’ – licenses banks registered in a special system which can track crypto operations, identify individuals involving in them, as well as keep records of transactions for five years. Among other things, the measures aim to identify illegal activity such as the use of crypto to finance terrorism.

Foreign crypto exchanges will be allowed to operate in Russia only if they are licensed in the nation that they are registered in and have a representative office in Russia.

Author: Diksha Khiatani

A writer by day and a reader at night. Emerging from an Engineering background, Diksha is a travel freak and anxious to explore different cultures and religions. Inclined towards the off-beat places, she wishes to uncover the secrets on her Scooty (if possible). She always grabs some time to take a quick nap, listen to music, skating and eat a brownie.

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