Market Cap
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3439
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20760
Markets
2020-03-25

Russia: Crypto and Blockchain Sandbox

In the face of legal uncertainty regarding crypto currencies in Russia, the federal ministry has introduced legislation that legalizes crypto and blockchain within a special regulatory environment.

The Ministry of Economic Development of the Russian Federation is said to have prepared a draft law that would allow testing the development of crypto and blockchain currencies within a special regulatory environment.

According to a report of the local news agency IzvestAia of 24 March, the bill was introduced on 17 March to the State Duma - the lower chamber of the Federal Assembly of Russia. 

According to Izvestia, the experimental law would concern digital technologies included in eight industries, including health care, financial markets, trade, transport, distance learning, construction, manufacturing and government services. 

The bill would unlock the experimental testing of projects such as unmanned vehicles, remote diagnostics, and the use of personal data without written consent.

According to the report, participants in crypto and regulatory blockchain will receive regulatory relief regarding minimum capital, reserve funds and reporting. Those using the sandbox would be exempt from the foreign exchange laws of the country concerned, as indicated in the report.

According to the Ministry, the Bank of Russia - the country's central bank - will act as a financial market regulator within the regulatory sandbox. The bank refused to comment on Izvestia whether it supports the Ministry's initiative.