Since 2014, the Russian government has gone back and forth in its idea of how it will manage crypto-escalation, even proposing an overt ban on crypto. Almost immediately followed by a change of heart. It is clear that Russia is determined to go ahead in favorable regulations, but can not think how to do it without facing a potential threat to citizens engaged in speculative trading.
Russia's deputy finance minister Alexey Moiseev has noted that "For the layman, it is impossible because this is a very dangerous investment that could lead to the loss of money." This seems to be the basis of the country's latest discussion on this issue. Russian officials have suggested that the country will ban crypto trade for "normal people," which indicates that only "qualified" investors can participate.
MOSKOW SECURITIES EXCHANGE TO TRADE KRIPTO
This comes at the coattails announcement that the Moscow Stock Exchange plans to start crypto trading.
While the exchanges have not been prepared, the expectation is that by early 2018, legislation will be passed to protect investors and facilitate the process. This important move will make the Moscow Stock Exchange the world's first stock exchange to officially recognize Bitcoin and other digital currencies as an investmentable asset.
The term "qualified investor" is unclear, but it is now recommended that traders need at least 6 million rubles (US $ 104K) for personal assets or 200 million rubles ($ 3.5 million) for investment companies to meet these criteria.
In spite of the contradictory Russian counter-statements, there is ongoing progress, both on the kriptocurrency front and on the blockchain wave.
Over the past few years, the Russian Central Bank has worked tirelessly to incorporate blockchain technology into their systems, even creating "Masterchain." Meanwhile, recently, a fellow President Vladimir Putin even announced his own crypto project, in the hope of encouraging the country into the mining dominance of Bitcoin.
ICOS
Compared to China, Russia also took a very warm approach on the issue of ICO.
The Russian government recently issued a statement on ICO, warning potential investors about the risks involved. China took a more drastic step by banning ICO trade together, at least until further legislation and regulations were made. This move left the market shaken, with Bitcoin dropping by $ 300 within hours of the announcement.
Russia may be mild about the rules ahead, but in clear banking, trade and regulatory regulations, the country has taken a firm stand:
Recently, the Russian authorities targeted three people who allegedly sold more than 500 million rubels worth of Bitcoin without guaranteeing the licenses required to do so. The men were accused of "illegal banking" but were basically broken up because of tax evasion. Authorities arrest these people through suspicious bank cards and SIM cards seem to be linked to certain bank accounts associated with these individuals.
While the legal framework is still under construction, the Russian government is in a strange position. Bitcoin trading into ruble is still a legal gray area, so it is unlikely that many lower profile cases will be charged.
GOOD OR BAD FOR KRIPTO?
Going forward, Russia has a good chance to take advantage of the rules ahead of most of the Western world. But rules can stand to have a dramatic impact on the market. Decisions that support more market-oriented regulatory rules can send crypto to the next level. However, as seen with China, tighter legislation laws can put a big dent in the market. It can even start a chain reaction with other governments following rules such as crackdown.