In a press release, the former Communist nation’s lawmakers have announced that they will introduce over 20 bills for better regulation and customer protection or cryptocurrency.
The sheer number of legislative measures the country is considering is in itself an indication of its faith in this virtual currency space. It expects to see further growth and adoption of the decentralized currency system in the near future and would like to ensure that the necessary framework is well in place. The preventive measure will also ensure that crypto-based fraud, scams and other crimes are minimized, in addition to stopping opportunities for money laundering.
The Russian parliament is at the start of the Spring session and the Chairman of the Lower Chamber Vyacheslav Volodin reported the growing need for financial regulations in the cryptocurrency space, for crowdfunding as well as digital rights.
Volodin shared that the draft bills would be placed before the Parliament to seek its approval in terms of quality of the bills and will also hope they consider the bill carefully before taking it to vote.
Russia is at a crossroads of sorts since the US-backed economic sanctions have now begun to cause insurmountable troubles by the day. One of the few economic options which Russia can consider in the current market conditions is cryptocurrencies.
Since these virtual assets do not require a regulatory force to oversee operations, it is hoped that these shall become its ticket to economic activity. There has been a fair share of crypto-crimes in the nation, with ATMs being misused by cryptocurrency users. Since the authorities feel that these machines may be wrongly used for purposes of cross-border transfer of money, there have been instances of locking away the crypto ATMs. On the other hand, the nation engages in typical crypto activity such as launching its own Initial Coin Offering to raise much-needed funds for developing cryptos.
Third attempt at crypto lawmaking
There have been iterative efforts in Russia to build-out the regulatory framework for the use and adoption of the cryptocurrency industry. The first round in September of 2018 saw loosely structured basic digital bills in place, leaving a lot of room of interpretations. In its second attempt in October, the bills were further tweaked to allow the participation and use by private players and other official institutions. It was also focused on developing facilities for storage of assets in the form of blockchain.