A new draft of cryptocurrency regulations has been submitted to the government by Russia’s Finance Ministry.
The statement released on Monday reported that the proposal would allow investments in assets, such as Bitcoin (BTC) by Russians. However, they were not allowed to make any purchases on them yet.
The debate surrounding cryptocurrencies has been ongoing with the Russian government and the central bank for some years.
The Finance Ministry stressed last month how vital cryptocurrency technology and development was and how it would be “necessary to allow” the coin to expand after the country’s central bank called for a ban on crypto transactions and crypto mining.
President Vladimir Putin called on the Finance Ministry and central bank to make a decision. He believed that Russia had “certain competitive advantages” in crypto mining and that it had “the surplus of electricity and well-trained personnel available in the country”.
The statement continued: “The use of digital currencies as a means of payment in the Russian Federation will continue to be prohibited. In the framework of the proposed regulation digital currencies are considered only as a tool for investment.”
Know Your Customer (KYC) checks were also brought to light in the statement. It added that exchanges should obtain a license and also be registered with the government.
If you are a citizen and you wish to invest in cryptocurrencies then you will be required to carry out a test and pass an exam based on one's knowledge of investing.
Any successful applicants will be granted an investment allowance of 600,000 Russian rubles ($7,505) per year in crypto. Those who don't pass will have their amounts capped at 50,000 rubles.
However, the statement did not divulge any information on the regulation of Russia even though the country is heavily involved in cryptocurrencies with more than 10% of its computing power used on the BTC network.