Bitcoin, Ethereum, Dogecoin Investors In Russia Would Have To Take Online Quiz To Invest, As Per New Draft Rules

Bitcoin, Ethereum, Dogecoin Investors In Russia Would Have To Take Online Quiz To Invest, As Per New Draft Rules
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Countries all round the world are grappling for ways to monitor and regulate the crypto industry. Long time ago, China had banned all Bitcoin mining activities in its country stating the environmental harm caused by it. America too, asked its federal government to propose ways of managing the crypto industry. India’s recent budget announcement of the current fiscal year proposed taxation on digital assets, among other things. Such recent action was taken by Russia on 21st February, Monday. Russia’s Finance Ministry proposed a new draft of rules and regulations about trading in cryptocurrencies, and also stated the prerequisites for investors to engage in the industry. 

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The draft defines Digital Mining as “an activity aimed at obtaining cryptocurrency.” The also proposes a set of rules submitted by Russia’s Finance Ministry deals with managing the activities of unregulated cryptocurrencies, which are Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). As one would expect, the draft does not undo the ban on payments through cryptocurrencies. It also limits the amount that the Russian citizens can invest in such crypto assets, which is capped at RUB 600,000. In American dollar, this amounts to $7,484.

This is not the end though; Russia has something more interesting in its store for the investors. In a very creative effort of filtering investors, the draft proposes to make investors take an online quiz before allowing them to engage in cryptos. The quiz will try to evaluate the awareness of the investors about the possible risks the industry has. Not completely disallowing those who fail the test, the draft also states that investors who do not pass the test can invest in the industry too but only up to RUB 50,000, which amounts to $623. Further, the investors will only be permitted if they are legally verified by the state. 

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President Putin mentioned recently that Bitcoin mining in Russia has “competitive advantages.” This comes from China’s ban on all mining activities, on account of damage to the environment. Following this ban, Russia has benefitted a lot from the flock of miners shifting to Russia, among other countries. 

With this, it is clear that Russia does not intend to ban the crypto industry altogether, but rather aims to monitor it and cash in on the profits. 

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