Amending to Russian Laws That Ban Crypto Transfers

Endy Callahan

Russian laws apply quite a few restrictions and limitations to the crypto industry. There are some certain rules that the local authorities have set for crypto transactions. The government bans crypto transfers and the laws that officials have developed and issued won’t let crypto enthusiasts perform various transactions without being punished.

In Russia, as many participants already know, crypto mining is not prohibited. Even though this activity is allowed, there is another problem that bothers many crypto holders. What people wish to be changed is the law that prohibits payouts in cryptocurrencies.

Authorities across the entire territory of the country keep on delegating the regulatory functions to each other. Professionals remind all users that the government has passed the first crypto law; however, regulating cryptocurrencies seems to be a challenging task for many officials.

The Ministry of Finance has found it necessary to propose a whole set of various amendments. They will be added to the law related to digital financial assets. As experts announce, the mentioned DFA law is used to ban a lot of operations performed with cryptocurrencies. Many mass media sources, includingIzvestia, state that the proposed changes offer a blanket ban. It covers all sorts of operations with digital funds for participants who perform them as individual entrepreneurs or as individuals.

Restrictions and limitations that the government applies to the crypto community may oftentimes sound and feel rather unreasonable. Officials do not feel prepared to study the crypto market to understand its major principles. This, in turn, makes more progressive users feel powerless against the regulatory system that gives no explanations and passes new bills that make little sense or even bring much harm.

Three Scenarios for the Future

Official representatives are willing to ban all cryptocurrency transactions. This excludes the obtaining of digital money through inheritance. Authorities apply the same rules to assets that were obtained through enforcement proceedings. Additionally, there are bankruptcies that authorities mention and allow in this case.

What bothers many crypto enthusiasts is the fact that the newly issued amendments might prohibit crypto miners from getting payments for their major activity, which is crypto mining. Currently, crypto mining is a totally legal activity. On the other hand, it loses its financial value. This occurs simply because payments are typically processed in cryptocurrencies such as ETH or BTC.

One of the latest reports carries even greater confusion and misunderstanding. As specialists claim, the current legal condition across the country is complicated and crypto laws are rather harsh. Authorities passed the DFA bill two months ago. Nevertheless, official representatives announce that the regulation is going to be issued through another law.

It is now referred to as the bill on digital currency. The recent news reports that the DA bill might be passed in the nearest five months. At the same time, the government is planning to adopt the DFA law next year. The latter intends to ban payments denominated in cryptocurrencies across the entire country.