Compass Investments

The Russian government has approved a new, far-reaching law on the cryptocurrency market, establishing a regulated system in the country for trading digital assets such as Bitcoin (CRYPTO: $BTC).

The law On Digital Currency and Digital Rights covers areas such as cryptocurrency custody and cross-border transactions involving digital assets.

This regulatory act establishes rules for firms operating in the Russian cryptocurrency market.

More from Cryptoprowl:

The regulatory framework applies to crypto exchanges, brokers, custodians, and other intermediaries, with the Bank of Russia playing a key role in overseeing the market.

It is reported that the bill has been sent to President Vladimir Putin for his signature, and he is expected to sign it into law.

In the future, licensed financial institutions will have an official framework for providing cryptocurrency services within the Russian Federation.

Licensed exchanges, brokers, custodians, and other intermediaries will be able to operate within the framework of the new legislative platform, which will replace a significant portion of the unregulated activity currently taking place outside the Russian financial system.

According to the Russian Ministry of Finance, the daily volume of cryptocurrency trading in the country reaches $640 million.

However, most of this activity takes place outside of official state and regulatory oversight. The new system aims to bring cryptocurrency trading and storage under regulatory oversight.

The law imposes restrictions on unqualified retail investors, allowing them to purchase cryptocurrency worth no more than 300,000 rubles ($3,820) per year.

Higher limits will be set for qualified investors in accordance with specific regulations.

Russian legislation does not recognize Bitcoin or other cryptocurrencies as official means of payment within the country. LINE_BREAK News about the new Russian cryptocurrency laws comes as the Clarity Act bill continues to be considered by the U.S. Congress in Washington, D.C.

On July 20, Bitcoin is trading at $66,500, its highest level in the past month.”,”detected_source_language”:”RU