Government’s Clampdown on Crypto Mining
The State Duma of Russia is officially throwing its hat into the ring of cryptocurrency regulation, particularly with plans to impose administrative penalties on mining activities. According to a recent interview with Anatoly Aksakov, the voice behind the State Duma Committee on the Financial Market, this might take shape by the end of June.
What’s in the Works?
Aksakov outlined a rather strict framework: any cryptocurrency operation deemed contrary to Russian law will be labeled illegitimate. This umbrella encompasses not only mining but also the organization of the cryptocurrency lifecycle—from issuance to circulation. Violators may be rewarded with sanctions that resemble the wrath of a parent discovering their child’s secret stash of candy. We’re talking hefty fines!
Cryptocurrency Legitimacy Under Fire
His comments on major cryptocurrencies like Bitcoin and Ethereum could be described as rather scathing. Here’s the gist; Aksakov doesn’t believe these cryptocurrencies hold any legitimate value under Russian law: “We believe that cryptocurrencies created on open blockchains such as bitcoins, ethers, and others are illegitimate tools.”
Owning but Not Mining: Two Sides of the Same Coin
Despite the impending bans, Aksakov assured digital currency enthusiasts that they can still keep their heads above water—or rather, their bitcoins in their wallets. He mentioned that owning Bitcoin, as long as it’s been acquired legally under foreign law, remains permissible. So, if you scored your BTC from a foreign exchange, congratulations—you’re still part of the crypto club!
Rethinking Interest in Bitcoin
In an intriguing twist, Aksakov hinted at a potential resurgence in mainstream interest toward Bitcoin. When? He believes it’ll happen as soon as transaction speeds pick up. The race to faster transaction rates might just spark a renewed fascination with cryptocurrencies in Russia. Hurry up, blockchain developers!
The Journey of Russia’s Crypto Legislation
Let’s rewind a bit. The major crypto bill, “On Digital Financial Assets,” was initially set for adoption back in May 2018 but hit a snag and is still in legislative limbo, largely due to the lack of necessary definitions pertaining to crypto mining and digital tokens.
Moreover, serious delays have mounted as Russia waits on guidelines from the Financial Action Task Force (FATF) about how to define and regulate digital assets. Oh, how the world of crypto feels like an ever-revolving door of legalese!
The Call for Inclusion in Civil Law
Adding to the chatter, judge Lyudmila Novoselova recently pushed for digital asset terminology to be integrated into Russian Civil Law. Because let’s face it, the longer lawmakers play hide and seek with terminology, the longer we remain stuck in regulatory no-man’s land.
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