Russian President Vladimir Putin has accepted a timeline for a framework in order to regulate initial coin offerings and digital currency mining operations. According to official Kremlin documents posted this week, Vladimir Putin signed numerous orders supposed to regulate digital currency utilization in Russia. Considerably, the orders mandated that Russian Prime Minister, Dmitry Medvedev, and central bank chief Elvira Nabiullina need to draft policies that deliver initial coin offerings in line with current regulations governing securities.
Dmitry Medvedev is tasked with more great responsibilities. One order instructs him to implement policies in order to require Russian digital currency mining operations to register with the authorities and decide the right method for the authorities to tax profits garnered from those operations. Some other requires him to determine the legal reputation of digital currencies used within the economic sphere based on the responsibility of the ruble as the only legal tender within the Russian Federation. All of these responsibilities must be finished by July 1.
Eventually, the authorities plans to set up a regulatory sandbox in order to permit the central bank consider extra rules for digital currencies and different financial technology merchandise, in addition to draft proposals for a single payment area created for the member states of the Eurasian Economic Union. This latter mandate can be in preparation for the release of the cryptoruble, a nation-managed digital currency that Vladimir Putin reportedly approved throughout a closed-door meeting this month.
Russian media outlet mentioned an official who said that the authorities was eager to launch the cryptoruble earlier than some other Eurasian Economic Union member nation beat them to the punch. Fellow Eurasian Economic Union member – Kazakhstan, for example, these days introduced plans to test with adopting a countrywide digital currency.
Information about the cryptoruble stay slender, but the authorities will reportedly levy a thirteen percent tax on people and businesses who try to trade their cryptorubles for fiat currency but can’t show that the cash were received legally. Critics argue that this policy, if carried out, will permit the authorities to benefit from money laundering operations and different monetary crimes.