Russian government proposes new regulations for cryptocurrency exchanges and P2P marketplaces

Previous reports by the Russian cental bank have advocated for an outright ban of cryptocurrencies as the bank sees crypto as a direct threat to the banking system and financial stability, but a newly-released report by the Russian government points towards a more balanced approach.

According to the new report, crypto purchases in Russia should only be legal if they take place via locally licensed brokers.

Russian citizens hold $26.7 billion worth of crypto, according to the report, but Russian law enforcement agencies have had hard time dealing with crimes involving crypto.

To remedy this situation, the prosed rules would require licensed firms and brokers to report transactions greater than 600,000 rubles to tax authorities, while also allowing banks to work with crypto exchanges and collect detailed identifying information on all clients.

The regulations would also apply to peer-to-peer marketplaces, while foreign exchanges that want to deal with Russian citizens would be required to have an office in the country.

If the new rules are passed into law, cryptocurrencies would be treated the same way as foreign currencies. The new directives are expected to be rolled out officially sometime this year, or early 2023.