Moscow's central bank, the Bank of Russia, is calling on those who use cryptocurrencies illegally to be held liable. Financial regulators have proposed a legal liability system for some transactions with digital assets.

They have suggested the implementation of new laws and liabilities through which a person will be held accountable for specific use cases involving digital assets. The Bank of Russia has taken some strong steps against digital assets and their illegal use.

In addition, reports indicate that they are seeking to stifle the circulation of decentralized currencies. This implies that certain Bitcoin uses could be restricted in the future.

The Russian government has not yet enacted a law regulating crypto activity entirely. The “On Digital Financial Assets,” however, does keep an eye on and oversee crypto activities to some degree.

Bank of Russia laws seem to target crypto payments. They mean this when they say "illegal circulation of digital financial assets." Although they promote digitization, they intend only to have one legal tender.

A digital version of the ruble is also being developed by the Bank of Russia. To introduce the third form of ruble money, after bank money and cash, a string of legislative changes is required, the central bank explains.

Anatoly Aksakov, chairman of the State Duma's Committee of Financial Market, revealed that the government intends to classify the pursuit of digital currency as an entrepreneurial activity. 

He states, “Since this is a kind of entrepreneurial activity, it is clearly necessary to enter it into the register, assigning it a code that corresponds to it as a type of entrepreneurial and taxing activity.”

Russian authorities have been pushing for a tax on all crypto businesses, in addition to cracking down on illegal crypto activities. The authorities also criticized the US for its Bitcoin ETF, further demonstrating its unwillingness to accept virtual currency in the near future.

Pavan A

CBW - External Analyst

INDIA