Sarah Tran
Independent Analyst
- The Russian finance ministry has drafted a bill that would regulate cryptocurrencies in the country.
- The proposal outlines that Bitcoin would only be considered an investment vehicle.
- Citizens in Russia would need to complete a test before investing in the new asset class.
Russia has approved to introduce a bill that would regulate cryptocurrencies instead of banning the new asset class. The Russian finance ministry has submitted a draft bill on Bitcoin regulation, which considers cryptos solely as an investment vehicle.
Russia requires crypto investors to complete testing procedure
There has been an intense dispute between the Bank of Russia and the Ministry of Finance over the past few weeks, as they hold opposing views on cryptocurrency regulation in the country.
The Bank of Russia has insisted on banning the new asset class, stating that there are investor risks posed by cryptocurrencies. The finance ministry has strived to incorporate digital assets into a legal framework.
The Russian government gave the finance ministry the green light to propose a bill to regulate digital assets last week as President Vladimir Putin has highlighted the advantages of Bitcoin mining in the country.
According to the statement, the Ministry of Finance will have several restrictions for citizens who are interested in investing in Bitcoin, including identification requirements and custody arrangements.
Citizens who wish to invest in the new asset class must provide their personal information to buy or sell cryptocurrencies on regulated exchanges with a purchase limit of $7,700 worth of Bitcoin per year.
Investors will also need to complete a testing procedure that assesses their knowledge of cryptocurrencies before they are able to purchase Bitcoin. Citizens who fail the test will only be able to invest up to $650 worth of BTC per year.
Citizens would not be able to withdraw the crypto assets into a self-custody wallet, as deposits and withdrawals of Bitcoin to and from an exchange will only be available through bank accounts.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin is showing rising correlation with the S&P 500
Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases
In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.
Consensys case against SEC over Ethereum dismissed by Texas court
Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Bitcoin: On the road to $60,000
Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.