While crypto regulation is still quite murky in Russia, a ministry in the country is making a huge effort to improving the situation.
According to prominent Russian publication, Izvestia, Russia’s Ministry of Economic Development recently published an official document on a draft framework for regulatory sandboxes.
The document includes cryptocurrency and blockchain technology testing, demonstrating the desire to provide clearer regulations for the local crypto industry.
Russia’s Regulatory Sandbox For Crypto
As per a report by Izvestia, the Ministry of Economy submitted the draft law to the lower house of Federal Assembly of Russia, State Duma, on March 17. This law would allow eight industries to experiment on digital technologies regulations-free for a given period of time.
These industries will include medicine, distance learning, transportation, trade, financial markets, public services, construction, and manufacturing.
The ministry is plotting a “satellite” bill that will contain a list of rules that the participants of the regulatory sandboxes will not be required to adhere to. For instance, the compulsory requirements for financial institutions regarding minimum capital holdings, reserved funds and reporting to the Russian central bank.
Moreover, the crypto participants will be exempted from the rules relating to the maximum risks per borrower in addition to the rules on foreign currency transactions between residents and non-residents.
Worth mentioning that Russia’s central bank, Bank of Russia, will be supervising the regulatory sandboxes.
Too Early To Celebrate?
Notably, the Central Bank of Russia has always maintained a hardline stance on cryptocurrencies. It recently reiterated that cryptocurrency issuance and trading should be prohibited in the country, as reported by ZyCrypto.
Russia’s bill entitled “On Digital Financial Assets” has been postponed on several occasions now since it was presented in February 2018. If implemented, all cryptocurrency activities in Russia will be banned save for crypto ownership.
Interestingly, Russia’s Central bank did not respond to Izvestia’s requests for comment on whether it is in full support of the Ministry’s initiative.
Moreover, with the ongoing COVID-19 crisis, such pro-crypto developments by Russia’s Ministry of Economic Development could face some unforeseen delays.