The Russian Ministry of Finance is continuing to implement its initiative to regulate cryptocurrencies within the country, and has submitted a bill to Parliament.
The bill was presented Feb. 18, according to a press release published Monday. It is based on the previously approved roadmap, which was created by several government bodies, including prominent law-enforcement agencies.
The move, which was initially revealed by a Russian official on Tuesday, highlights the policy rift between the Bank of Russia and the government.
The central bank, which has been promoting the pilot of its digital currency, the digital ruble, has proposed hefty fines for individuals and firms who engage in crypto trading and issuance: TASS news agency reported.
The Bank of Russia’s objections “will be considered in the further work on this bill, where they don’t contradict the Ministry of Finance approach,” according to a press release from the Ministry of Finance.
The bill’s text has yet to be published in the online database for legislative papers.
The bill classifies cryptocurrencies as an investment instrument rather than money, prohibiting their use to pay for products and services.
The decree also specifies criteria for cryptocurrency exchanges and over-the-counter platforms, which must fulfill certain standards in order to be eligible for a license and be included on the government register.
To offer services in Russia, crypto exchanges must register legal entities with the government.
Users must go through know-your-customer (KYC) checks with both banks and cryptocurrency exchanges in order to make bitcoin-to-fiat transactions, according to the release.
Exchanges will also have to provide consumers with information about the dangers of investing in cryptocurrency.
Investors will be required to take online tests to confirm that they have a sufficient understanding of cryptocurrencies and associated risks.
Those who pass the exam may invest up to 600,000 rubles a year in cryptocurrencies; those who don’t are limited to 50,000 rubles. There will be no restrictions on a competent investor.
Exchanges must keep their own cryptocurrencies and customers’ funds in different accounts and maintain a log of all their users’ crypto addresses. Customers should not be held liable for any outstanding obligations owed to their exchange.
The bill’s passage is seen as a step toward regulating cryptocurrency mining. According to the statement, it will be overseen by dedicated government agencies, with no further details provided.