Crypto Bill Review Regulates Crypto-Fiat Transactions Over $9.6K, Report Says

April 16, 2018 3:55 pm Published by

Forklog reported Friday the Russian government has reportedly prepared a review of the draft bill “On Digital Financial Assets,” detailing terms of the exchange of cryptocurrency for fiat for more than 600,000 rubles (approximately $9,600) or its foreign equivalent being subjected to mandatory currency exchange regulation.

The review must still be presented to the state Duma, or legislature, according to Anatoly Aksakov, the head of the financial market committee, the report said.

Transactions of more than 600,000 rubles are currenly tracked by Russian banks for prevention of money laundering and terrorism financing, Forklog reported.

The latest version of the draft bill, submitted on March 20, 2018, defines crypto and digital tokens as digital financial assets that can only be traded on authorized crypto exchanges, as well as details KYC regulations for Initial Coin Offerings (ICO), CoinDesk reported. The bill would also require user accounts at crypto exchanges to be verified for AML and and counter terrorism financing (CTF).

According to Russia’s Federal Financial Monitoring Service, Crypto exchange operators should be subject to Article 5 of Federal Law 115-FZ (against AML and CTF) or they will lose their license.

The president of the Russian Association of Cryptocurrency and Blockchain (RACIB) Yuri Pripachkin, said the latest version of the bill, which requires crypto transactions to be regulated by bank and Federal Financial Monitoring Service control, may make Russian crypto miners leave the country to work in more “crypto-friendly” places, the report said. Forklog notes the draft bill review does not mention taxes on crypto mining profits.

As the draft bill classifies crypto as property, the government also wants to tax digital asset transactions, the report said.

According to Teimuraz Vashakmadze, an associate professor at the Russian Presidential Academy of National Economy and Public Administration, a 13 percent personal income tax could be imposed on crypto traders, the report said., Jack Durschlag

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