Russia To Prevent Crypto Scams By Providing A “Civilized Direction”

Mikhail Mushustin, Russia’s Prime Minister, gave out a statement during a government meeting held on the 26th of November, 2020. In this statement, Mushustin stated that Russia’s government is making plans to take the country’s crypto markets into a “civilized direction” in an attempt to protect the nation’s users from scams.

Plans Of Classifying Crypto As Property

Mushustin proposed that a legal framework should be introduced that allows crypto asset holders to ensure that their interests and rights are protected. Mushustin acknowledged the growing interest in digital assets as a whole, but stressed the need to prevent so-called “shadow schemes” from operating within the crypto space, as well.

This grand plan involves the Russian Tax Code being amended, suggested the Prime Minister. Through doing so, crypto will be legally classified as property. This, in turn, will allow owners to lean into legal protection should any illegal actions happen, and further allows them to defend the rights of said property within the court of Russian law.

Plan

Russia’s Unsteady Relationship With Crypto

It was back in January of this year when Mishustin was declared the new Prime Minister of the country. He had served the Russian Federal Tax Service for a decade prior to this new position. After he was appointed, Mishustin stated that Russia should prioritize a national digital economy program and its development.

Even so, Russia’s regulatory climate regarding cryptocurrencies have been hazy at best. Vladimir Putin, the President of the country, had signed a crypto bill into law, however. This bill classified cryptocurrencies as property, further governing the issuance of digital securities as well.

Many Plans In Motion

However, September saw the news come out that the Ministry of Finance for Russia is making plans to enact a new law. This law would see the mandating of crypto holders to report their crypto income to authorities for appropriate taxation. Should anyone decide not to do so under this new planned law, they could face hard labour, heavy fines, or even three years in prison.

Talks have also been floating around, hinting that the country is planning to ban crypto as a means of payment by early next year. This, of course, would cause even more uncertainty for investors within Russia. The country seems to be unable to decide if it wants crypto, doesn’t want it, or just wants the money it can generate.

Russia, in the meantime, is planning out its digital Ruble, which would stand as the country’s central bank digital currency, or CBDC.

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A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.