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In just two weeks, virtual currencies and Initial Coin Offerings (ICOs) should obtain legal status in the Russian Federation. After the announcement made by Facebook about Libra, some analysts ask whether the new virtual currency is going to be included in this regulatory ecosystem. Apparently, it will be excluded.
Russia Regulates The Cryptocurrency Market
The Russian State Duma is expected to adopt new regulations for digital currencies and ICOs. This is going to help the government control the market, impose sanctions and protect investors. The information was released by the local media news outlet Tass.
During a recent interview, the Deputy Finance Minister Alexei Moiseev commented:
“We discussed the bill and agreed on the final version of the text during a meeting last week. Fundamentally, everything is settled now. We are making the final revisions, and, hopefully, we’ll be ready to adopt it in the second reading within two weeks.”
There is also going to be a separate bill that will be regulating Initial Coin Offerings. This will allow companies to have a clear legal framework in which to operate if they want to raise funds through the crypto market.
The chairman of the financial market committee of the lower chamber of the parliament, Anatoliy Aksakov, explained that they had to delay the new law because the Financial Action Task Force (FATF) was required to expand the terminology of the legislation in the country. Indeed, the Russian president Vladimir Putin requested the parliament to adopt crypto legislation by July 2019.
Facebook has just announced the creation of a new cryptocurrency called Libra. The blockchain project aims at connecting the world with a cryptocurrency and offering users the possibility to transact funds among each other. There are several large companies supporting the initiative and are already investing in the project. Some of these companies include Uber, PayPal, Mercado Libre or Mastercard, among others.
Russia is not going to be legalizing the LIbra digital asset. Nonetheless, Russian individuals will have the possibility to purchase it on crypto trading platforms from other countries. The country is expected to limit and prohibit the creation of crypto exchanges and trading platforms for trading these coins, informed Aksakov.
With these regulations that the country is now implementing, it is expected for it to receive investments from crypto-related companies that are searching for countries with clear regulations to settle their operations.
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