Russian Ministry of Finance has accepted a number of crypto regulatory proposals submitted by the country’s law enforcement departments. These proposals cover many related topics, such as the seizure and reporting on information about cryptocurrency transactions.
Finance Ministry of Russia Supports Regulations Proposed By Law Enforcement Agencies
Russia’s Ministry of Finance (Minfin) has supported some regulatory ideas regarding cryptocurrencies put forward by the nation’s law enforcement services, the daily Izvestia unveiled this week. The ministry is responsible for drafting the legislation that will introduce comprehensive rules for the nation’s crypto space, which is only partially regulated at the moment.
The new bill “On Digital Currency” is expected to be filed with the State Duma, the lower house of Russian parliament, in May. A number of government institutions have provided feedback and suggested amendments to the draft, including several relevant ministries, the Federal Tax Service (FNS), and Russia’s financial watchdog, Rosfinmonitoring.
Certain provisions were also suggested by law enforcement authorities in relation to their specific fields. The Federal Security Service (FSB), for example, wants crypto exchanges to be required to provide information to not only the courts but also to investigators who are investigating cases involving digital assets.
The Ministry of Internal Affairs (MVD) believes that the draft law “On Digital Currency” does not fully detail the procedure that exchanges should follow when they have to freeze cryptocurrency funds following a court order. The ministry also requests the establishment rules to protect crypto assets confiscated from exchanges.
Izvestia has seen a document that shows the Minfin agreed to include the FSB’s and MVD’s proposals into the new law. FNS suggested that the ministry tighten regulation for unlicensed cryptocurrency exchanges and wallet provider providers. Russian tax authorities want to prohibit the advertisement of these platforms.
Other proposals of tax and security officials to introduce harsher regulations were rejected by the finance ministry. The department considers it inappropriate to impose “excessively detailed and strict regulation” at this stage of the crypto market’s development, warning this could cause an outflow of both customers and investors.
Meanwhile, Prosecutor General Igor Krasnov has reiterated his opinion that digital currency provisions should be added to Russia’s criminal law. It will allow law enforcement agencies to seize cryptocurrency funds and investigate instances of theft. Krasnov, in his annual address to Congress, noted the increase of crime using virtual assets.
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