Russia‘s Ministry of Finance wants investors within its border to first pass an online test in order to trade in cryptocurrencies.
- The test is designed to establish the users’ understanding of
cryptoand whether they are aware of the risks.
- Those who manage to clear it will be able to invest 600,000 rubles per year, which is around ₹5.6 lakh.
- Those who don’t pass the test will be subject to a limit of 50,000 rubles, which comes upto just under ₹50,000.
Russia may have found a novel way to regulate cryptocurrency regulations within its borders. The country, which is expected to come up with a draft proposal for crypto regulations, is apparently going to require users to take an online test before they are allowed to invest in cryptos, according to an announcement by the country’s Ministry of Finance.
The apex institution has prepared and submitted a draft of its proposal to the Russian government. The country’s central bank had initially proposed banning cryptocurrency altogether, which has been acknowledged by the ministry in its press release — but the government has decided to go down the regulation route instead.
However, while trading may be legal if the bill passes, the government will continue to prohibit the use of cryptocurrencies as a means of payment within Russia.
Russia’s crypto test
According to the ministry’s announcement, the test will be designed to “determine the level of knowledge” about the “specifics” of investing in cryptos and ensure that they are aware of the risks.
If one passes the test, they will be able to invest in digital currencies up to 600,000 rubles per annum — that’s around ₹5.6 lakh as per the current exchange rate.
However, if one fails the test, it’s not like they’ll be barred from trading on crypto exchanges. But, they will be subject to a limit of 50,000 rubles — which comes up to around ₹47,000 as of February 22.
“Qualified investors and legal entities will make transactions without restrictions,” the ministry said.
How do you study for a crypto test?
The impetus of users having the correct “level of knowledge” has been put on the crypto exchanges that operate within the country. According to the crypto bill, crypto exchanges are obligated to inform users about the “high risk” of investing in cryptocurrencies.
Summary of other salient points within Russia’s crypto bill:
- Digital currencies as a means of payment within Russia will continue to be prohibited — they are only an investment vehicle
- A special register of operators, which includes cryptocurrency exchanges, will be created to activities related to the circulation of digital currencies
- Crypto exchanges specifically with have to maintain a register that identifies all holders of digital currencies on their platform
- Crypto exchanges are required to separate between the digital currency owned by them and the digital currency of trading participants
- The debts of crypto exchanges can’t be extended to trading participants and legal entities
- Foreign cryptocurrency exchanges will have to register for a license in order to operate in Russia
- Deposit and withdrawal of cryptocurrencies will only be allowed through banking accounts
- Customer identification will be carried out by both operators and by banks
- Control and supervisory functions will be brought in to oversee digital mining