In Russia, cryptocurrency will soon be accepted for payment

Vladimir Putin's Ministry of Finance is close to finishing a proposed law that would allow the use of crypto as a form of payment, according to Kommersant, a Russian news outlet.

The law also focuses on mining, which might provide much-needed clarification to the local mining industry. Professional and non-professional buyers are also introduced, as well as the necessity for laws of trade.

The "On Digital Currencies" Act of 2017

It appears that the law reported by Kommersant will make it legal to pay with cryptocurrency even if it isn't considered to be "a monetary unit of the Russian Federation." Investing in cryptocurrencies will also be recognized.

Only cryptocurrencies that "do not have an obliged person" will be regarded lawful in the country under the new laws, which does not apply to all of the cryptos. This suggests that Bitcoin (BTC) will be accepted as a form of payment, while stablecoins like Tether (USDT) will not.

Russia's preferred cryptocurrencies are still a mystery.

As a result of this legislation, only a select few will be able to register as exchange operators or operators of digital trading platforms. In order to operate in Russia, the first will have to prove 30 million rubles in regulatory requirements, while the second will have to show 100 million rubles in regulatory requirements.

In the same way that traditional financial institutions are compelled to submit regulatory files and statements, crypto companies will also be required to do the same. In addition, any foreign company wishing to conduct business in Russia will be required to establish a branch in the nation.

Reactions to the limitations

Many investors will be forced to look for alternatives on the illicit market or elsewhere, according to experts. Only the greatest financial institutions, according to them, will be allowed to act as market makers or takers in this new market.

The usage of foreign currencies by Russians is not outlawed; nevertheless, in order to withdraw money, they must do it through local means and their own bank accounts. It's the opinion of GMT Legal's managing partner Andrey Tugarin,"

“It will be impossible to sell or buy digital currencies without passing identification. The operator will be able to deposit and withdraw fiat currencies only through banks using a bank account.”