Russia To Provide Legal Framework for the Use Of Cryptocurrencies

The Russian president has entrusted the government to draft legislation regulating the field of virtual currencies such as Bitcoin, which is booming in Russia and around the world.

The Russian government and the Bank of Russia have been charged by President Vladimir Putin to draft laws regulating the operation and use of cryptocurrencies such as Bitcoin. The decision was announced on October 24th on the Kremlin’s official website.

The laws in question will have to be ready by July 2018. They will include, among other things, the obligation for “minors” of Bitcoin (those who contribute to the creation of the currency by lending against the computing power of their computer ), Ether and other virtual currencies, to register and pay taxes related to them.

The Russian president also wants to introduce rules for “initial coin offerings”, a method of fundraising via the emission of “tokens” exchangeable later against virtual currencies. This means of attracting capital enjoys considerable popularity in the world: in the third quarter of 2017, international companies have managed to collect 1.12 billion euros, according to The Wall Street Journal .

In the month of October, Vladimir Putin warned against the risks associated with the use of cryptocurrencies and warned that there would be no responsible in case they collapse, as virtual currencies are issued by “an unlimited number of anonymous sources”.

For now, the use of digital currencies is not regulated in Russia.

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About the Author: Michelle Babduct

Michelle is a cryptocurrency editor who graduated from the University Of Michigan. She likes social media trends, being semi-healthy, Buffalo Wild Wings and vodka with lime. When she isn’t writing, Maria loves to travel. She last went to Thailand to play with elephants and is planning a trip to Bali.

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