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Russia plans to let ‘non-residents’ use crypto exchanges, helping miners sell BTC

Bitcoin (BTC) and crypto mining may soon be regulated in Russia, but that hasn’t stopped the country’s government from devising a means for crypto miners to sell their tokens even if the country starts cracking down on transactions.

According to reports, President Vladimir Putin intervened directly to break the long standoff between the Ministry of Finance (pro-business and cautiously pro-crypto adoption) and the resolutely anti-crypto Central Bank. Draft legislation that would eliminate anonymity and require crypto exchanges to be regulated by a new super-regulatory agency is now favoured by the parties, according to reports.

Political squabbling in Moscow has left miners – particularly industrial miners – in the cold, with many calling on officials to “hurry up” and legalise their sector. Because their work is neither unlawful nor recognised by the government, miners have been mired in limbo.

With Russia’s massive energy resources, Putin has spoken of the country’s advantageous crypto conditions, which include Russia’s second-largest Bitcoin mining nation behind the United States.

It appears Russia’s government is interested in selling their BTC with some degree of freedom, providing the buyers aren’t Russian citizens.

“Non-residents” should be permitted to “access remotely, if necessary, […] digital currency exchange operators and foreign digital currency exchanges within Russian territory,” according to ministry draught suggestions, according to Interfax.

In addition, the authors of the document explained:

“In the event of the formation of a legal [framework to police] cryptocurrencies in the Russian legal field and the Russian financial system, there is a high probability that foreign investors will come to purchase newly created cryptocurrencies from Russian miners.”

As a matter of policy, these transactions should be handled by an unnamed Russian bank.

In addition, the government reportedly proposes that only the “most mature and established cryptocurrencies” be made available on local platforms.

According to one of Russia’s most prominent MPs, the country’s crypto sector can be boosted through regulation.

Working group member Alexander Yakubovsky said the forthcoming bill “would allow citizens the opportunity to legally participate in developing innovative financial initiatives and to protect them from the acts of fraudsters” via the official Telegram channel of Russia’s ruling United Russia Party.

According to him, his political party was collaborating with “experts” to “prepare suggestions for the growth of blockchain technology” in the crypto area.

Government officials have characterised their approach as a way to “bring digital currency out of the shadows and create the prospect of lawful economic activity,” as reported by Tass.

“Currently, Russian residents have a considerable amount of funds in crypto wallets. This is the case not only for large-scale investors, but also for individuals. As such, the legalization of all [crypto-related] processes should result in a status quo whereby investing in cryptocurrency becomes convenient and safe for them.”

With its next draught law (to be released on February 18), the government has also indicated that it intends to focus on the “protection of citizens’ rights” and could seek to adjust restrictions for both industrial and retail investors.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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