A branch of the Russian federal government has recently published a draft of new litigation called On Digital Financial Assets, which is focused on enforcing strict cryptocurrency laws in the country. The legislation has not been approved yet and has been in discussion since 2018.
The new laws define Bitcoin as property but not legal tender, and propose, among many other things, that Bitcoin (BTC) miners register as individual companies so they can be appropriately taxed. President Putin is planning on developing and revealing a new tax for Bitcoin miners by July 1, but many are skeptical about the governments ability to regulate the cryptocurrency industry.
In spite of this recent development toward increased regulation of digital assets, Russian peer-to-peer Bitcoin transactions have spiked significantly.
In this article, Russias legislative approach toward cryptocurrencies will be discussed and compared to the attempts made by other governments to understand and regulate the industry. First, lets take a look at the recent popularity of Bitcoin in Russia.
The popularity of cryptocurrency and financial technology
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