Russia has been quite stern on Bitcoin use right from the start, and unqualified crypto purchase or illegal Bitcoin possession was dealt with very strictly. The situation remained the same until cryptocurrency regulations, and the intelligence claim of partial deanonymizing surfaced.
With the recent introduction of digital assets into Russian laws wherein cryptocurrencies have been legalized as a type of taxable property (effective Jan 2021), financial bodies have proposed strict laws around digital financial assets.
The country’s finance ministry seeks to adhere to heavy penalties and criminal charges upon non-disclosure of digital assets. Since cryptocurrency is currently not legalized as a payment method, a violation could lead to serious legal action.
Taxation agencies will be closely monitoring all purchases and any unrevealed or censored digital assets If found may lead to consequential repercussions
Unqualified crypto purchase
Monetary regulator, i.e., Central Bank of Russia, now seeks to limit unqualified crypto purchases. Purchases above 600 thousand rubles annually ($7700) would be banned. The directive is specifically for unqualified investors, and while it is under public discussion until the 27th of October, it is expected to be effective by Jan 2021 if approved. No proposition for qualified investors has been revealed currently, and they are open to digital investment based on foreign laws.
Binance, the world’s largest crypto exchanged has offered details on crypto product acquisition and has been negatively highlighted by media censorship for the same.
The financial authorities of Russia are exploring the viability of developing a central bank digital currency (CBDC) termed “Crypto Ruble”.
After the initial displeasure towards digitized currency, Putin’s now-growing interest is speculated to be in encrypted transactions, which auto limit the constraints levied by international sanctions. The decision may have been affected by the CBDC launch efforts in China, the USA, and Turkey.