The Russian Ministry of Finance said on Monday that it has submitted draft legislation regulating cryptocurrencies, including customer identification and investment limits.
Russia is one of the top crypto-mining countries in the world and authorities have criticized cryptocurrencies for years, fearing they could be used for illegal activities and calling for regulation.
In January, the central bank proposed an outright ban on cryptocurrencies, but the finance ministry is pushing to regulate the sector to help attract investment.
“The proposed changes are aimed at creating a legal market for digital currencies, with rules established for their circulation and circle of participants,” the ministry said in a statement.
Under the bill, cryptocurrencies will be allowed only as an investment instrument.
Among other proposals, foreign cryptocurrency exchanges will have to be licensed in Russia.
The Finance Ministry also said, “Operations involving the purchase or sale of cryptocurrency will be possible only if the customer is identified.” A move that would end anonymity, a major tenet of the crypto world.
The draft law also hopes to introduce literacy tests for those wishing to invest in digital currencies.
The finance ministry said that if the tests are “successful”, Russians will be able to invest up to 600,000 rubles ($7,700, 6,800 euros) in digital currencies. Without such tests, the limit would be 50,000 rubles.
Russian authorities granted cryptocurrencies legal status in 2020, but their use in payments was never authorized.
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