The ban on the purchase of crypto-currencies and mining in Russia. What does it mean?

On 12 March the Central Bank issued its amendments to the bill on digital of financial assets, which proposed to limit the purchase of cryptocurrency assets to qualified investors. Simply put — keep track of all transactions occurring with the participation of cryptocurrency. The draft law was at the disposal of edition Hi-News.ruand today we will try to understand what really threatens the population of its adoption. And do we need such a law.

What happened?

Over the past two years, the state Duma is trying to issue a law on the regulation of kryptonyte in Russia. According to lawmakers, the absence of legislation in this area threatens the development of the shadow economy and simplify the laundering of the proceeds of crime. The bill has repeatedly sent back for revision — the last time in January of this year. Then in the new version under digital of financial assets started to understand that any rights issued through the blockchain.

And now not be able to buy cryptocurrency?

Not really. According to the content of the bill, the Central Bank allowed to buy scriptactive even “unskilled” to investors within a certain amount per year. Specific data is not yet known, but the head of the Duma Committee on Finance hinted that we are talking about 600 thousand rubles of investments in scriptactive during the year.

And who are “qualified” investors?

In order to become the kind of investor you must have a qualification certificate, or have investment experience from one year or work experience in the profile from two years in an organization that is a qualified investor in accordance with the law. To non-qualified investors include most individual investors, especially individuals.

What restrictions to impose for the average investor?

In the guidance the Central Bank said that plans to limit the amount of money transferred as payment for the purchase of cryptocurrency assets total cost of digital assets (e.g., tokens) and the cost of the cryptocurrency. In the latter case we are talking about the cryptocurrency, which can be released in Russia in the framework of the law.

It is now, all transactions will be tracked?

According to this law, investors will still be able to buy digital assets without intermediary from qualified investors (but within a certain amount). At the same time exchange will have still to track all transactions and share that information with each other to calculate the total cost of assets purchased by an unskilled investor. This provision, in particular, was introduced in the latest revision of the bill.

How someone finds out that I bought the cryptocurrency?

If you do this through foreign exchange (or just under a contractual relationship), to track nothing happens. As with the purchase of crypto-currencies for cash or with funds obtained through mining. Track the number of cryptocurrencies a particular person is now impossible — if only officials would not oblige banks to “merge” information about buying a crypt with Bank cards. Or even begin to block all foreign exchange (but the example Telegram all know how it works). Then the whole sector will just go into the shadows, where he is now and without that is (80 percent).

Then what’s the point?

The law primarily seeks to regulate market relations, with assets that will produce legal persons, entrepreneurs and foreign companies operating under Russian law. Each “statement exchange digital of financial assets” will be introduced by the Central Bank in a special register.

Wait. After all, legally buy cryptocurrency in Russia it is impossible!

So. In Russia there is no legal exchanges or brokers who sell the cryptocurrency report on their operations in, on, and so on. And as through official channels in Russia no one! do not buy, I do not understand what they’re going to track.

What is this, mining is also banned?

No, because no such definition in the legal framework. Yes, and it is unclear how this will be implemented. Under the new law to produce scriptactive will be able only to legal entities and individual entrepreneurs, including foreigners. For transactions with a CFA is supposed to use not a decentralized system, characteristic of blockchain systems, and the private distributed information system.

But it kills the entire point of cryptocurrency!

In fact, Yes, because the blockchain implies decentralization, while the Central Bank wants to create a unified database of operators, which can be implemented by buying scriptaction.

All of this really necessary?

According to the regulator, the appeal of private cryptocurrencies, which are unsecured and not guaranteed by any government, carries high risks for consumers and investors, and cryptocurrency transactions can be used to launder the proceeds of crime.

What’s happening now?

The bill on digital financial asset in fact has been adopted by the state Duma in the first reading. The second reading was repeatedly postponed due to the amendment of the law has caused a lot of criticism due to the large number of flaws. However, the second reading of the bill was also passed this week. According to the decree of the President of the Russian Federation, the final regulation of the cryptocurrency sector should be introduced no later than 1 July 2019. That’s just what they will govern — is still unclear. Now it’s more like a struggle with what is not: through official channels cryptocurrency to buy, at the same time officials want to limit purchases to these channels. Quare?

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