Andrey Tugarin: “It will not be possible to create crypto exchanges and crypto exchangers in the Russian Federation”

The bill, which yesterday, November 17, a group of deputies submitted to the State Duma, proposes the legalization of mining as an activity. But there are nuances.

Managing partner
GMT Legal Andrey Tugarin commented on the deputy initiative specifically for Bits.Media:

The concept of mining is fixed in the legislation, it will be possible to mine both individuals and legal entities. The authors even prescribed tax obligations, which has a downside – it will be possible to officially take into account the costs to the miners – they have been waiting for this for a long time.

A completely new and unusual phrase “prohibition of the supply of digital currency in order to organize circulation” appears in the project. In my opinion, this is the most colorful part of the whole project. The wording clearly refers to the Bank of Russia and its position on the conduct of a “prohibitive policy” regarding the turnover and legal status of cryptocurrencies in the Russian Federation.

This means: it will be impossible to create crypto exchanges in the Russian Federation and crypto exchanges in the Russian Federation using the Russian information infrastructure. International platforms remain in force, the ban does not apply to them.

Nothing significant has changed, all these prohibitions already existed in their native form. Recall the methodological recommendations of the Central Bank and its recognition that all operations with digital currencies are a sign indicating the laundering of proceeds from crime or the financing of terrorism. Everyone kept these recommendations in mind, and now they are reflected in the document. You can continue to work, do not panic.

In order for the new norms to work, there is still a lot to be added, the bill will entail many more amendments, at least the introduction of an experimental legal regime. In reality, the law will begin to work, according to my forecasts, in two years – with the intensive work of the government.

There is not a word in the text about liability for violating the provisions of the law: neither criminal nor administrative. I think we will only talk about content restrictions, a la restrictions on alcohol advertising on federal TV channels, on YouTube, and so on.