Russia’s Prime Minister Mikhail Mishustin has proposed certain actions for the European country to contribute to the growth of crypto and regulate the digital asset properly.
Part of what the prime minister proposed legal protection for Russians who own cryptos. Mishustin asked that the government recognizes crypto as a property under the nation’s tax code. This means the country has to amend the country’s Tax Code to recognize cryptos as properties.
Mishustin explains such measures would help Russia’s crypto space grow, and crypto owners can protect their assets. Russia also would be preventing shadow schemes.
The Prime minister at a government meeting on Thursday acknowledged that interest in cryptocurrencies is growing in the country, so the government has to lead the crypto space development.
Russia’s previous stand for cryptocurrencies
Like many country Russia, does not have a detailed regulatory framework for cryptocurrencies. However, earlier this year, president, Vladimir Putin, signed a crypto bill in the country. The law allowed crypto to gain legal status in the European country; however, it can’t pay for goods in the country.
Banks and exchanges were also allowed to be operators of the cryptocurrencies so long they are registered with the country’s apex bank, the Bank of Russia.
Weeks after the bill was signed, the country’s ministry of finance proposed a bill with harsh penalties for crypto holders who do not report their holdings above $1,280.
30 percent fine would be paid, or jail term are proposed sanctions for erring holders who do declare their holdings after it gets more than 100,000 rubles ($1,280) the bill proposed.
However, the ministry of justice watered down the bill stating that it is under consideration for adoption.
Mishustin’s push for digital economy
Mikhail Mishustin, Russia’s prime minister, appointed in January, has been a pro-crypto economist. Upon his appointment, Mishustin promised to turn the European country into a digital platform “for the people.”
However, the future of crypto in the European country remains hanging as the government plans to ban crypto payment by January 2021.