Russian Government Published Crypto Regulation Bill

The Ministry of Finance of the Russian Federation published draft "On Digital Financial Assets" bill
25 January 2018   580

The Ministry of Finance of the Russian Federation published the text of the draft law on cryptocurrencies prepared by it, or, as it is called in the office's edition, "On Digital Financial Assets".

Under the digital financial assets in the document are meant cryptocurrencies and tokens. The Ministry of Finance notes that they "are not a legal means of payment in the territory of the Russian Federation".

These are keynotes of the document:

  • Operators of cryptocurrency exchanges must be registered as legal entities and comply with federal laws "On the securities market" and "On organized trades".
  • Mining is an entrepreneurial activity.
  • Cryptocurrency and token are types of digital financial asset.
  • A smart contract is a contract in electronic form.
  • The organizers of the ICO should disclose information about the beneficiaries, the location of the issuer, information about persons performing custodial activities, the rights of the holders of tokens and the procedure for their implementation.
  • Unqualified investors are allowed to buy tokens, but the amount is limited to no more than 50,000 rubles. (around 900 $)
  • The exchange of crypto-currencies and tokens is allowed for other crypto-currencies, rubles and foreign currencies only through stock exchanges registered in Russia.

There is no information on cryptocurrency taxation in the Bill. 

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   39

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.