Russia Gives Details of Its Cryptocurrency Bill Expected to be Launched in February

The Russian deputy Finance Minister, Mr. Alexei Moiseev has announced that the country’s cryptocurrency bill is expected to be unveiled on the 1st of February, 2018. He touched on some details about the bill such as taxation and registration of crypto miners, trading restrictions for bitcoin as well as regulations to guide Initial Coin Offerings (ICO).

The country’s Finance ministry is working together with the Central Bank on this bill. Together, they are developing a regulatory framework for cryptocurrencies and ICOs. This comes after the instructions given by President Putin for regulations to be implemented by July next year.

In an interview with Russian 24TV Channel, Mr. Moiseev said that “If I’m not mistaken, the proposals should be formulated by February 1 in the framework of the President’s mandate.”

It is anticipated that the bill will be finally adopted in spring amidst a number of discussions and deliberations. The deputy Finance Minister further stated that he “believes that changes to the Civil Code of the Russian Federation in connection with the adoption of the draft law on the regulation of cryptocurrencies will not be required.”

Earlier this week, the Central Bank’s First Deputy Chairman Mr. Olga Skorobogatova, said that “cryptocurrency mining is a kind of activity of legal entities and private entrepreneurs which should be taxed.”

However the issue of taxing miners is yet to be decided at this point. In October, the Finance Ministry proposed that cryptocurrency miners be registered, as well as a proposed registration for local crypto-exchanges. Speaking to the Tass, Mr. Moiseev is reported to have said that;

“The Ministry of Finance does not intend to introduce licensing for the mining of cryptocurrency but mining will be taxed.”

The authorities plan to make moves to register all entities involved with bitcoin trading as soon as practicable. Mr. Moiseev notes that even though bitcoin trading is not officially sanctioned, it is not illegal either.

The bill is also expected to address ICO regulation. The deputy Finance Minister states that there might be limits on the targeted amounts to be raised. He also believes that there should be a laid down process of execution as well as legal obligations.