Legal Liability for illicit crypto operations proposed by Bank of Russia


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