As a way to prevent virtual currencies from being used to fund terrorists, evading tax, among other illegal activities, Russia is looking at introducing a special state register of cryptocurrency investors. The move to introduce the register has already begun with a draft bill which seeks to compel all those involved or are planning to be involved with cryptocurrencies to register with the government.
According to a Russian lawmaker who is involved with the bill,
“We aim to minimize the existing risks of using digital objects for transferring assets into an unregulated digital environment for the legalization of criminal incomes, bankruptcy fraud or for sponsoring terrorist groups”
The new draft bill brings the term ’cryptocurrency’ to the Russian law together with ’digital money’ although it does not recognize them as a means of payment.
The special state register of cryptocurrency investors will be maintained by either the country’s top bank or the ministry of finance. Yuri Pripachkin, the head, Russian Association of Cryptocurrencies and Blockchain, noted that the register can be likened to the KYC requirements that other countries require from companies dealing with virtual currencies.
Although the new draft has so much to offer in protecting illegal usage of digital money, Sergey Rudanov, IT head at the Otkritie bank in Russia, observed that the bill does not give clear guidelines of how violators will be treated. If the bill becomes law, all individuals and companies dealing with cryptocurrencies including investors and miners will have to appear in the register for them to be allowed to operate in the country.
This bill comes at a time when Vladimir Putin, the president of Russia, has given a deadline of 1st July this year for the adoption of regulations aimed at the Russian cryptocurrency market.
What advantages and or disadvantages do you think the special state register of cryptocurrency investors will have in the Russian cryptocurrency market?
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