Russia may have devised a novel method of enforcing cryptocurrency restrictions within its borders. According to an announcement made by the country’s Ministry of Finance, the government, which is scheduled to provide a draft plan for crypto legislation, will supposedly force consumers to complete an online test before they are allowed to invest in cryptos.
The apex institution has created and submitted to the Russian government a draft of its proposal. The country’s central bank had previously advocated outright bans on cryptocurrency, which the ministry admitted in a news release — but the government has decided to follow the regulatory way instead.
However, even if the bill is passed, the government will continue to prohibit the use of cryptocurrencies as a means of payment within Russia.
The test, according to the ministry’s release, would be aimed to “assess the level of understanding” about the “specifics” of investing in cryptocurrencies and guarantee that they are aware of the risks.
If they pass the test, they would be authorized to invest in digital currencies up to 600,000 rubles per year – about 5.6 lakh at the current exchange rate.
However, if a person fails the test, they will not be prohibited from trading on cryptocurrency exchanges. They will, however, be subject to a 50,000 ruble cap, which equates to about $47,000 as of February 22.
“Qualified investors and legal entities will make transactions without restrictions,” the ministry said.
The emphasis has been placed on users having the appropriate “degree of understanding” of the crypto exchanges that operate within the country. The crypto bill requires crypto exchanges to advise users about the “high risk” of investing in cryptocurrencies.