The Russian Ministry of Finance has accepted multiple crypto regulatory proposals submitted by the country’s law enforcement agencies. They cover a range of related areas, including seizing digital assets and reporting cryptocurrency transactions.
Russian Ministry of Finance backs regulations proposed by law enforcement agencies
According to news published this week by Izvestia, Russia’s Ministry of Finance (Minfin) has backed some of the regulatory ideas for cryptocurrencies proposed by the country’s law enforcement agencies. The ministry is responsible for drafting legislation to introduce comprehensive rules for the nation’s crypto space, which is currently only partially regulated.
The new bill “On Digital Currency” is expected to be submitted to the State Duma, the lower house of the Russian parliament, in May. Several government agencies provided feedback and suggested changes to the draft, including several relevant ministries, the Federal Tax Service (FNS) and Russia’s financial regulator, Rosfinmonitoring.
Law enforcement has also proposed several regulations for their respective fields. For example, the Federal Security Service (FSB) wants to require cryptocurrency exchanges and wallet providers to share information not only with courts, but also with investigators working on cases involving digital financial assets.
The Ministry of Interior (MVD) believes that the draft law “on digital currencies” does not fully detail the procedures that exchanges should follow when they have to freeze cryptocurrency funds under a court order. The department also called for the adoption of rules for the establishment of wallets that would be used to store confiscated crypto assets.
Minfin has agreed to incorporate the FSB and MVD proposals into the new law, according to a document seen by Izvestia. The ministry has also accepted the FNS’s recommendation to strengthen regulation of unlicensed cryptocurrency exchanges and wallet providers. The tax authorities want to ban ads on such platforms in Russia.
However, the Treasury Department has rejected other moves by security and tax officials aimed at introducing tougher rules. The department considers it inappropriate to impose “overly detailed and stringent regulations” at this stage of the crypto market’s development, warning that this could lead to an exodus of customers and investors.
Meanwhile, Prosecutor General Igor Krasnov reiterated his view that digital currency provisions should be added to Russia’s criminal code. This will help law enforcement investigate cases of cryptocurrency theft and seize cryptocurrency funds. Crimes involving virtual assets are on the rise, Krasnov said in his annual address to the Upper House Federal Committee.
What do you think of the Russian law enforcement agency’s crypto regulation proposal? Let us know in the comments section below.
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