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Russia is preparing to vote on a draft law that aims to regulate the crypto market in the country. According to the legislative proposal, cryptoassets will be classified as investment tools.

The bill is the result of the efforts of the Ministry of Finance and may be voted on by the Russian parliament soon. Although the document is not publicly available, the body submitted the proposal on February 18, 2022.

The use of cryptoassets as a means of payment is questioned in the legislative proposal. According to Russia, digital currencies cannot be used for this purpose.

The rules apply to investors and exchanges that want to operate in the Russian crypto market. In addition, OTC trading desks are also to be subject to the new cryptoasset legislation.

O projeto de lei pretende criar até um sistema de testes para investidores qualificados, onde o usuário deverá comprovar que possui conhecimentos no mercado.

In Russia, buying and selling cryptoassets can only happen via bank transfers, says the bill. The text also talks about maintaining the KYC data verification system in banks and exchanges.

Test for cryptoasset investors

The draft law even intends to create a testing system for qualified investors, where the users will have to prove that they have market knowledge.

If classified as a qualified investor, the citizen will be able to invest in cryptoassets up to ₽ 600,000 annually, for example. However, if the user fails the test, this investment will be limited to ₽ 50 thousand, about R$ 3 thousand.

Created by the Ministry of Finance in partnership with other Russian governmental bodies, the draft law regulating the crypto market presents a proposal contrary to what has been suggested by the Russian Central Bank.

Recently, the Central Bank of Russia proposed criminalizing crypto activities through a report. In addition, the body suggested creating fines for investors and companies operating in the sector. According to the Tass news agency, this fine could range between ₽500,000 and ₽1 million, between R$ 31.000,00 and R$62.000,00.