Russia moves forward to legislation to regulate crypto

Russia to ban cash withdrawals via anonymous electronic means of payment and to control over supply & mining 
18 October 2017   1345

It seems like the majority of countries have already realized the inevitability of popularization of cryptocurrencies among the masses. While countries slam their doors in front of the brand new technology, the others give the cryptocurrencies the green light. Now the whole world is waiting for one of the most influential countries, Russia, to have its say.

For now, there are several news on the subject came from the country.

One of it is that Russia is to ban cash withdrawals via anonymous electronic means of payment. The draft federal law was introduced by the Ministry of Finance of Russia. The bill is aimed at improving control over anonymous payments made by individuals using non-personal electronic means of payment. As for the remaining funds, they be transferred to the account of a legal entity, an individual entrepreneur, to the account of that individual, as well as to fulfill his obligations to the credit organization, as detailed.

The anonymous electronic means of payment, that is, various Internet wallets, nonpersonalized bank cards where the owner's name is not indicated are often used to cash out money, and money of criminal origin in particular: laundered capital, bribes. It is almost impossible to trace the final recipient <...> The money circulate must be absolutely transparent, it has to comply with the requirements of Russian legislation and conventions to combat money laundering. That's why withdrawing cash from anonymous cards or wallets will be prohibited.

Dmitry Medvedev
The Prime Minister of Russia

The bill has been reviewed and approved at a meeting of the Government of the Russian Federation on October 12th, 2017.

Yet another significant thing is that, according to the Russian President Vladimir Putin, Russia will issue its own ‘CryptoRuble’ (the news broke through Minister of Communications Nikolay Nikiforov). Today, it appeared that The Ministry of Communications of the Russian Federation has prepared a Government Decision on the technological implementation of the national cryptocurrency release. A decision on its issue and regulation will be made by the Bank of Russia and the RF Ministry of Finance. Thus, the head of the Ministry of Communications considers it necessary to provide state control over the issue of national cryptocurrency, however, private business is to be able to participate in creating an ecosystem.

It's noteworthy that China's PBoC is also speculated to create state-sponsored cryptocurrency and to be the only emissary of it. Whether Russia is following in the China's footsteps, remains to be seen. 

New York State to Revise BitLicense Granting Terms

At the moment, BitLicense is the most stringent legal framework for the cryptocurrency industry
23 October 2019   6

The terms for granting the so-called BitLicense, the license required for cryptocurrency companies to work in New York State, will be reviewed. This was stated by the superintendent of the New York Department of Financial Services (NYDFS) Linda Lacewell, reports CoinDesk.

BitLicense is considered the most stringent legal framework for the cryptocurrency industry at the state level. In particular, companies are required to receive it for cryptocurrency transactions of New Yorkers, even if they themselves are based in other jurisdictions.

Last year, Kraken, a San Francisco-based exchange, chose not to receive BitLicense, but to completely leave New York. Earlier this year, the Bittrex exchange (Seattle) also left the state without licensing.

This is a good time to take a look, a responsible look and see how our regime is fitting the current market and … what if any adjustments should we think about making to continue to adapt to sort of a changing industry … that’s going to be one of the things that [we do].

Linda Lacewell

Superintendent, New York Department of Financial Services

At the same time, she called not to “be too happy” about possible changes in the rules for the cryptocurrency industry.

According to her, the current regulatory regime “works well,” but the industry has changed since 2015, when BitLicense was introduced.

How has the industry grown? Has it matured in any way? And I don’t want to get too specific, but you know, it’s a good time for a second look.

Linda Lacewell

Superintendent, New York Department of Financial Services

 Lacewell did not specify when the revision of licensing terms will be completed and what exactly industry participants can expect in the end.

Since the introduction of the license until June 2018, only 6 companies have received BitLicense, but over the past 20 months, after the regulator has softened its position, 16 more companies have been added to their number.