Russia Plans To Legalize Bitcoin And Regulate Cryptocurrency Mining

Contrary to Russia’s ban on cryptocurrencies and Bitcoin, in particular, earlier this year, looks like they are taking a second look but with some restrictions this time.

Now Russia is to approve the buying and selling of Bitcoin but makes mining an illegal act. The Russian Deputy Finance Minister, Aleksey Moiseev mentioned an interview that penalties would vary for different mining situations. If someone mines just to settle financial transactions, then it’s a punishable criminal case.

Moiseev continued as he further explains punishable offenses that come with cryptocurrencies as he says those who create illicit money-making investment schemes whereby early investors are paid primarily by later investors in order not to pay the tax would be punished.

All miners, companies or individuals are to register with a central authority for approval in other to set up mining operations.

As the country works on the legislation to legalize Bitcoins and alternative cryptocurrencies, Moiseev again made it clear that trading cryptocurrencies would be authorized but how long it will take for this law to take effect would take a while, some few months to be precise.

All these have not stopped the countries plans to develop its very own cryptocurrency called the Crypto Ruble which was made known in a closed-door meeting by Russian President Vladimir Putin in Moscow earlier in the year. The Crypto Ruble isn’t a minable one and will only be issued, maintained, and controlled by the Russian authorities alone. The cryptocurrency can be easily exchanged for the Rubles at any point in time as long as the holder can explain where he/she got them. In a situation that the holder isn’t able to tell, a 13% tax would be levied on whatever amount would be exchanged.

Meanwhile, Russia is testing the possibility of a Blockchain based voting system for the country. As announced, the technology will lessen or eliminate fraudulent activities during elections.

At the moment, mining and Bitcoin transactions are not regulated. Nevertheless, President Vladimir Putin has instructed that a cryptocurrency governing body is created to monitor Bitcoin, alternative currencies, ICOs (Initial Coin Offerings), Mining of cryptocurrencies, and all that has to do with digital currencies by July 2018.

Image source: TheMerkle