As investors prepare for another busy week in the digital currency market, attention is turning to recent Russia crypto news. The country is fast preparing the final rollout of its cryptocurrency infrastructure. Now, a Russian news outlet is letting investors in on what shape this legislation will likely take. As a result, many investors and experts pondering what the legalization of crypto in Russia means for the rest of the world.
The relationship between the Russian government and crypto has been a rollercoaster ride throughout the year.
Early in the 2021, it seemed that the nation had no interest in the asset class. The Russian central bank produced the most far-reaching proposal on crypto that the country had seen up to that point. The proposal sought to ban the mining and transaction of crypto.
Just days later, though, Russian President Vladimir Putin signaled that he would not allow such a proposal to pass. Putin pressed against it, advocating for Russia to embrace crypto. In his view, the country would be capable of dominating the crypto mining industry, thanks to its mass reserves of energy it can direct toward the venture.
With the most powerful man in Russia looking to embrace cryptocurrency, other government bodies have been warming up to digital assets. Meanwhile, opinions abroad have started to form, speculating that Russia’s quick reversal was a means to evade sanctions for its invasion of Ukraine.
The country added fuel to the fire when it considered accepting crypto for fuel sales abroad.
Russia Crypto News: Kremlin Prepares to Fully Adopt Digital Money
Today’s Russia crypto news therefore builds upon a fast-moving pivot.
Russia’s On Digital Currency bill is in its final form, according to a local Russian news outlet that reportedly has access to the final draft. The news shares broad insight into the proposal; mainly, it suggests that the country will treat crypto in the same way as fiat currency. Moreover, it implements a series of licenses and reporting requirements for crypto platforms and their users.
One of the more interesting aspects of the bill is the investor qualification rule. Certain “qualified” investors, which the proposal describes as “professional purchasers of digital currency,” will have untethered access to crypto trading. Meanwhile, regular Russian citizens will have a cap on the amount of crypto they can buy in a year. Reports suggest this cap will be equivalent to $7,000 in assets.
So what does it mean for investors around the world? Following China’s blanket bans on crypto mining and crypto trading and India’s high tax proposal, many crypto bulls see this proposal as positive. The hope is that countries such as the U.S. would similarly lean into cryptocurrencies.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.