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

[m2017]

Yesterday, April 1st (this is not an April Fool's joke), Australia passed a partially similar law (Corporations Amendment (Digital Assets Framework) Bill 2025) regulating digital assets. This concerns mandatory licensing of crypto exchanges. Now, crypto exchanges are required to obtain licenses (and pay fees) like brokers or funds. At the same time, they must ensure the protection of client funds, standardized disclosure (something any bitcoiners would appreciate ), dispute resolution mechanisms, and compensation.

This law only regulates exchangers (intermediaries in interactions with cryptocurrencies), but I think we will see a bill in the style of Russian regulation (I expect a lighter version).

Source: https://pro-blockchain.com/en/australia-passes-crypto-law-afsl-now-mandatory-for-all-exchanges

This is how regulation will spread to this industry. The Crypto Wild West is gradually becoming a thing of the past.

[dansus021]

This is basically a rule that happened on every country that legalized crypto as a tradable asset. Here in Indonesia, you can also only trade on a centralized exchange that has a license and that have strict rules for listing a token.

Bitcoin as payment would never have happened in my opinion, especially in a country like Russia, and also in Indonesia, there will be no excuses.

crypto reserve US also had one

Trading Mining must have proper licenses because the gov want piece of the pie of your profit in the form of tax, as part of legalized crypto itself.

[joniboini]

you can also only trade on a centralized exchange that has a license and that have strict rules for listing a token.

I always feel like that rule isn't actively enforced, judging from new listings on some exchanges that I followed. I can't imagine meme tokens as something that can pass strict criteria, unless they only look at short-term market cap and the likes of them. We have many examples where those coins fall into obscurity sooner or later. Then again, rules can always change. It won't surprise me if they start introducing more laws to fix the previous loopholes.

[Zlantann]

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.

This law is simply a means of centralizing all crypto transactions. Restricting P2P transactions is another level of threat to crypto users, to discourage them from using decentralised platforms. Russians who don't care about privacy will be comfortable with these laws. While others might take the risk of bypassing the law or simply go outside the country to carry out crypto transactions.

Many crypto-related businesses might leave Russia because some of them might not be comfortable with these new laws.

Yesterday, April 1st (this is not an April Fool's joke), Australia passed a partially similar law (Corporations Amendment (Digital Assets Framework) Bill 2025) regulating digital assets. This concerns mandatory licensing of crypto exchanges. Now, crypto exchanges are required to obtain licenses (and pay fees) like brokers or funds. At the same time, they must ensure the protection of client funds, standardized disclosure (something any bitcoiners would appreciate ), dispute resolution mechanisms, and compensation.

The crypto market is full of fraudulent companies. The government needs to protect Australians from these fake service providers. Mandatory licensing and payment are taxes and responsibilities of businesses operating in a country. However, it becomes a problem when the regulation is too stringent.

[Lucius]

Who even cares what happens in a country that has been aggressing against its neighbor for years and is responsible for the terrible destruction and deaths of hundreds of thousands of people? Whatever laws they pass, they pass them to prevent ordinary people from being financially independent and to be able to control them better.

At the same time, these same laws will help their elites become even richer, and also help them finance the war they are currently waging. By the way, did you know that this forum is officially blocked in Russia?

[m2017]

Who even cares what happens in a country that has been aggressing against its neighbor for years and is responsible for the terrible destruction and deaths of hundreds of thousands of people? Whatever laws they pass, they pass them to prevent ordinary people from being financially independent and to be able to control them better.

At the very least, to know what a worst-case scenario for crypto regulation looks like. I'm sure not all countries will follow the path of reasonable and balanced regulation. Therefore, every crypto user should be prepared for such unfavorable regulation.

I repeat, not all countries will have positive regulation. Don't count on it. Not everyone will have hopes for a "bright" crypto future.


That bill also includes a clause on wallets. Starting July 1, 2026 (if the law is passed), foreign currency residents of the country (essentially everyone) must notify the tax authorities about their foreign wallets (probably because all local ones will be controlled by the regulator).

Wallets must be opened and closed within one month. Reporting of transactions is also mandatory.

It's funny (or rather, not), isn't it? First, they impose obligations, and then a mandatory requirement with penalties (there will certainly be fines for concealing information about one's wallets and crypto assets). Of course, we're talking about custodial wallets, whose owners can be identified. But how does the regulator plan to find out about non-custodial wallets?

In this country, the cryptocurrency industry is beginning to be regulated in such a way that all the advantages of cryptocurrencies will be neutralized (but at the same time, the impact of crypto's shortcomings, namely, a distributed ledger with transaction information that allows regulator for user control, will be maximized), and ownership of these assets will be equivalent to owning a bank account deposit. The question arises: why are cryptocurrencies even needed under these conditions (for users)?

[NotATether]

There are way too many exchangers in Russia for them to consider forcing the vast majority of them out. Then they will just move shop to another country, and Russia loses the tax it would otherwise gain from them. So this is not exactly a genius move.

[Lucius]

~snip~
In this country, the cryptocurrency industry is beginning to be regulated in such a way that all the advantages of cryptocurrencies will be neutralized (but at the same time, the impact of crypto's shortcomings, namely, a distributed ledger with transaction information that allows regulator for user control, will be maximized), and ownership of these assets will be equivalent to owning a bank account deposit. The question arises: why are cryptocurrencies even needed under these conditions (for users)?

Regulation is one thing, how someone in any given country treats cryptocurrencies is something else entirely. I want to say that the average Russian who invests or in any way deals with cryptocurrencies will not be at all worried because his state wants to squeeze him even harder than it usually does, but will find a way to stay under the radar.

If I wanted to live by the laws of my country, I would have to go fill out a form every week to report what I earn from the signature campaign, and then pay additional taxes because it is considered second income in addition to the job you normally do.

In France, everyone is required to declare that they own cryptocurrencies, and then a corrupt employee who has insight into this information sells it to criminals who then attack the owners and demand money.

Laws are often dangerous and difficult to enforce, and everyone has the opportunity to adapt them to themselves, unless they are one of those who unquestioningly carry out everything the government imposes on them.

[dansus021]

you can also only trade on a centralized exchange that has a license and that have strict rules for listing a token.

I always feel like that rule isn't actively enforced, judging from new listings on some exchanges that I followed. I can't imagine meme tokens as something that can pass strict criteria, unless they only look at short-term market cap and the likes of them. We have many examples where those coins fall into obscurity sooner or later. Then again, rules can always change. It won't surprise me if they start introducing more laws to fix the previous loopholes.

hahah my friend joniboini and YESS sirrr you are rightt I also wonder that some news discussed that CEX is heavily regulated but I also saw a memecoin has been listed freely, maybe one of the reasons is money itself. If lot of pair means people are gonna trade it, Indonesia law basically put tax on every trade means wheter you buy or sell they gov get the piece of the pie.

[m2017]

Regulation is one thing, how someone in any given country treats cryptocurrencies is something else entirely. I want to say that the average Russian who invests or in any way deals with cryptocurrencies will not be at all worried because his state wants to squeeze him even harder than it usually does, but will find a way to stay under the radar.

Regulation will directly dictate the terms of circulation of crypto currencies in the country. Everyone will be forced to adapt to these changes (either accept them unconditionally or try to evade them).

How is the average Russian different from the average citizen of any other average country? Nothing. Every regulator, to one degree or another, tries to clamp down on its citizens.

Concerns will arise with the introduction of fines and criminal liability. Such risks will significantly reduce the number of active investors and users.

If I wanted to live by the laws of my country, I would have to go fill out a form every week to report what I earn from the signature campaign, and then pay additional taxes because it is considered second income in addition to the job you normally do.

So, the laws of your country are not respected and not implemented?

In France, everyone is required to declare that they own cryptocurrencies, and then a corrupt employee who has insight into this information sells it to criminals who then attack the owners and demand money.

Well, the trend I mentioned in the original post is becoming apparent, and a pattern emerges for how regulation will look globally (with mandatory declaration of crypto assets and wallets).

The same story with corrupt employees will unfold both in Russia and other countries.

Laws are often dangerous and difficult to enforce, and everyone has the opportunity to adapt them to themselves, unless they are one of those who unquestioningly carry out everything the government imposes on them.

It must be acknowledged that laws don't serve the interests of citizens (in most countries), and governments aren't friends who do everything for their citizens.

And the point raised about adapting laws to one's own needs sounds amusing. What a hypocritical world we live in if we publicly proclaim the same rules (laws), but everyone interprets them in their own way.