Cryptocurrency in Russia is set to take a big loss if a new bill to the effect is passed. The bill might include specific details on the prohibition of issuance and circulation of these digital assets.
Speaking during a recent interview, the head of the Central Bank of Russia’s legal department Alexey Guznov, confirmed this, even though the new bill has not yet been published.
Originally, the bill was dubbed “On Digital Financial Assets” and had details that seemed good for the cryptocurrency sector in Russia. The bill was originally introduced on Jan. 25 2018 by the country’s Ministry of Finance. It had details including the definition of cryptocurrency and how it should be properly traded. It also stated that initial coin offerings (ICO) will be allowed and that there will be know-your-customer (KYC) requirements for the token sales. It would seem that these plans are now gone with the wind.
In the interview, Guznov described cryptocurrencies as an “unjustified risk”, explaining that they will be detrimental to the country’s financial system and the framework already in place to protect consumers.
“As such, the bill explicitly prohibits emission and organization of cryptocurrency circulation, introducing legal liability for violating these rules.”
Just last month, Russia’s central bank published brand new guidelines for banks and how they handle transactions.
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