Russia has proven to be a very peculiar region when it comes to cryptocurrency regulation. Now, Andrey Khrapov, the Head of Russia’s Directorate for Drug Trafficking, has outlined some interesting guidelines regarding crypto assets which emphasize a stronger focus on KYC as well as a lower altcoin transaction threshold.
Another Regulatory Proposal Introduced in Russia
It has become apparent that regulating Bitcoin in a comprehensive manner globally is going to be a major challenge. Applying traditional financial guidelines to the digital asset sector is not feasible by any means, and it seems as though a whole new set of rules will need to be introduced to govern this nascent domain more effectively.
A new proposal by Andrey Khrapov is rather intriguing in this respect, albeit it may not necessarily be turned into a law anytime soon. The head of Russia’s Directorate for Drug Trafficking is concerned about the criminal use of Bitcoin and other cryptocurrencies. As such, he aims to tighten KYC requirements for transactions surpassing 600,000 rubles or $900. Those transactions will need to be monitored by and registered with Russian authorities for further analysis.
For cryptocurrency users, this would be a very interesting development. Although the low transaction limit may pose certain challenges and problems for the average crypto enthusiast/investor.
The Ministry of Finance is seemingly in favor of using this proposal to its maximum potential, although it has met some stiff opposition in the form of Russian Deputy Minister of Economic Development Savva Shipov.
These latest developments confirm that regulating Bitcoin and other cryptocurrencies is a lot more difficult than originally assumed. At the same time, this newly proposed amendment shows Russian officials have no intention of banning Bitcoin activity, but mainly want to bring more legitimacy to this booming industry.
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