Russia considering creation of territories for cryptocurrency trading

The Russian Ministry of Finance is considering the possibility of authorizing cryptocurrency auctions in individual territories, deputy Finance Minister Alexey Moiseev announced, as reported by RIA Novosti. According to Moiseev, the ministry is considering Kaliningrad as well as Russky and October Island for arranged digital currency auctions.

“Of course, we believe that it is necessary to permit this exchange in Russia,” Moiseev assured. “In fact, in the bill (“On digital financial assets”) which we have set in place, the sale [of cryptocurrency] in organized auctions is envisaged,” he added. He stressed, however, that “perhaps it will not be in public territory”, but will rather take place “in the context of special territories, such as the Free Port of Vladivostok”. “There is already an offshore element there. A bill is now being prepared on Russky and October Island, where there will be an even more special regime,” the deputy minister explained.

Moiseev noted that Central Bank does not support the initiative. On February 1, first deputy chairwoman of the Bank of Russia Olga Skorobogatova said that the regulator still opposes the possibility of cryptocurrency exchange operations within the country.

According to Moiseev, there are still several thousand active exchangers, who essentially offer cryptocurrency exchange services outside the country. “And there is no problem with this,” the deputy minister remarked. He believes it is the Finance Ministry’s task to redeem this market’s reputation.

The Ministry of Finance proposed the bill “On digital financial assets” in January. According to this document, citizens will be able to buy and sell cryptocurrencies and tokens through trading platforms, brokers, dealers and forex who have the necessary licenses. According to the bill, digital financial assets can be exchanged for rubles, foreign currency and other property. The bill also limits the amount which unqualified investors will be allowed to invest in an Initial Coin Offering (ICO) to 50,000 rubles.

The Finance Ministry cautioned that an outright ban on such deals in Russia would force the market underground and stimulate the use of cryptocurrencies “as an instrument for servicing illegal business, as well as the legalization of revenue gained through criminal activity, and the financing of terrorism”.

  cryptocurrency, Russia

Comments

Please visit out Twitter account for updates on the situation in Ukraine.