Regulation of the crypto sector in Russia as an example of industry development

[m2017]

In the near future (this spring), Russia may pass a bill regulating cryptocurrencies. One of its provisions stipulates that digital asset transactions will only be conducted through legal intermediaries (controlled by the regulator) under the standard pretext of countering terrorism and combating money laundering (you get the idea, the usual). This means KYCs and the collection of information on all transactions (which, honestly, will never leak online!). So, will P2P transactions be illegal if digital asset transactions are only permitted through legal intermediaries?

Investors will be divided into qualified professionals (something like brokers) and ordinary investors. The most amusing thing is that ordinary investors will be allowed to purchase cryptocurrencies from a specific list of 5-10 (freedom of choice? – never heard of it!) and no more than 300,000 rubles (approximately $3,700) per year. This is undoubtedly due to concerns about investors investing in shitcoins.

The bill also includes penalties for domestic payments in cryptocurrencies: fines of 100,000 to 200,000 rubles for individuals and 700,000 to 1 million rubles for legal entities. - Do you still expect the regulator to allow the free use of bitcoin as a payment method?

The cryptocurrency used for payment will be confiscated. - And this is already a way to build up a crypto reserve at the expense of the country's citizens.

The next point is criminal liability (planned for July 2027) for intermediary activity. This means that this bill will force all exchangers out of the market, leaving only legal ones under the regulator's control.

The bill also proposes introducing criminal penalties (up to 5 years in prison) for illegal mining with income exceeding 13 million rubles (mining without being registered as a miner). How's that for you?

Also, on February 20, the president signed a law according to which cryptocurrencies are considered property for the purposes of the criminal code, meaning that crytocurrencies can be confiscated in criminal cases. - In fact, the regulator is indeed starting to recognize cryptocurrencies, but not quite in the way the community expects.

The bill has not yet been passed, but a rough outline of the crypto industry's development in this country is visible.

Bitcoiners wanted the legalization of crypto. Now you're getting what you asked for. The regulations will be roughly as follows. Somewhere softer, somewhere stricter. And you, reader, have anything to say about this bill? How do you see the future of the crypto industry in your country?

Source (attention, in Russian): https://www.forbes.ru/investicii/557842-dveri-zakryvautsa-kak-budut-nakazyvat-za-torgovlu-kriptovalutoj

[tbct_mt2]

In the near future (this spring), Russia may pass a bill regulating cryptocurrencies. One of its provisions stipulates that digital asset transactions will only be conducted through legal intermediaries (controlled by the regulator) under the standard pretext of countering terrorism and combating money laundering (you get the idea, the usual). This means KYCs and the collection of information on all transactions (which, honestly, will never leak online!). So, will P2P transactions be illegal if digital asset transactions are only permitted through legal intermediaries?

With that new bill for updating regulations in cryptocurrency industry in Russia and with Putin regime, they can freeze and seize money of citizens anytime through what are called as Legal Intermediaries. Perhaps Russians will find ways to bypass it with legal risk for themselves but some of Russians will try it, while if they use Legal Intermediaries, it's really unsafe.

KYC is already known as extremely dangerous and useless but even people don't care about it or sacrifice it, their funds will still be very unsafe.
Reminder: do not keep your money in online accounts

[sergiorus]

this will be a very popular way to purchase digital assets in Russia as everyone is sick of the risks involved in purchasing them on Bybit P2P platform and unfortunately that has been the only trusted way to do so in the past few years.

I still remember purchasing crypto on Binance via debit card. how fast and smooth it was. people need it again and they won't care that the platform is affiliated with the gov.

[noorman0]

If their government believes all crypto activity should be regulated, it's clear that many of crypto's technical features will have to be discarded and wasted.
It could be argued that crypto isn't for Russians. If the population is forced to adapt to these regulations, crypto-related violations may become the new normal, even if they're not committed by criminals.

[Ucy]

Well, this is why Bitcoin is more suitable for remote mobile communities, independent of typical national system, where fiat or banking services may not be accessible. So, the communities can always have Bitcoin and fiat just incase either of the two is unavailable. If fiat for example is unavailable, people who have Bitcoin can use it for payments for their needs or necessities, otherwise such law maybe depriving them of their right to survive. And a law like that can be successfully challenged in a proper court of law

By the way, all the remote communities should let governments have access to all their decentralized, transparent and anonymity-friendly online marketplaces, stores, etc, that they use for exchange of goods and services, to enable them (governments) monitor their activities. If something is wrong somewhere the governments can request for investigations and sanctions, and the communities in collaboration with the governments will handle that trustlessly and transparently. Everyone has to be involved in the process to prevent abuse.


In regards to mining, it's just better to get manufacturers build home heaters that mine Bitcoin for small scale users. For large scale users who may need heat as byproduct for their farm/greenhouse, large homes, etc, it may be necessary to register.



*We don't ask governments to legalize what every reasonable or basic law has already made legal. Right to privacy, right to property ownership, freedom of speech, etc, are legal rights encoded in the Bitcoin protocol