Central Bank of Russia to prohibit Circulation of crypto

The new proposal of the Russian Central Bank is seeking to prohibit all kinds of institutions to remain away from crypto-related activities. 

Crypto is a legal tradeable asset in Russia but citizens are prohibited to use crypto as legal tender in the Russian federation. However, under the legal status, crypto space is prohibited in the Russian federation to evolve. Russian lawmakers are trying to manipulate the growth of digital assets-based services.

 As we know, how the Cryptocurrency market changed from the initial phase to such high-level services. And it all happens because of the support of multiple crypto firms, which are dedicated to providing a highly simple, and best crypto service that allows people to use digital assets in all possible ways under regulatory guidelines. 

In the latest, Bank of Russia proposed a legislation proposal “Main Directions for Financial Market Development of the Russian Federation” for the upcoming 2 years i.e 2024. 

Under this proposed legislation of the Russian Central Bank, all the institutions, firms, or any company are prohibited to create a new tool or environment for the crypto inclined services to promote or boost the adoption of cryptocurrencies. 

This project document has been approved by the lower house of the federal assembly, Board of Directors for submission with the State Duma. 

Besides all these efforts, the Russian Central Bank is planning to introduce better legislation and framework on crypto to generate revenue based on the crypto transactions taxation system. However, they are working on it and soon in the future, they will also implement it. 

Are Russian crypto laws incomplete? 

Russia introduced its crypto regulation bill on 1 January 2021, but still, there are many things in crypto which are out of the crypto regulation framework of Russia. 

From time to time many crypto leaders of Russia raised concerns over the crypto regulation of the Russian government and said that Russian did nothing for the crypto industry. 

However Russian lawmakers are trying their best to bring better laws and regulations to restrict all the industries under full regulation. For example, they are considering Bitcoin or crypto mining business to list in the enterprise’s businesses of Russia, to impose better laws to tax. 

Read also: SEC agency will held an open meeting on crypto on 2 December