The Russian Ministry of Finance on Monday submitted draft cryptocurrency regulations to the country’s government – a step towards organizing unregulated cryptocurrencies such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) in the country.
What happened: The draft submitted by the ministry would not remove the current ban on cryptocurrency payments for goods and services and would cap the amount Russians can invest in cryptocurrencies at 600,000 RUB ($7,484).
Citizens would be required to take an online test before they can buy cryptocurrencies to assess their risk awareness. Those who fail the test can only invest up to 50,000 RUB ($623).
The proposed rules define the requirements for exchanges and exchangers related to digital currencies. The sale or purchase of digital currencies would only be possible if the customer is identified.
See also: How to buy bitcoins (BTC)
Why is this important: After China banned cryptocurrency mining last year, cryptocurrency miners flocked to North America, Russia and Kazakhstan.
President of Russia Vladimir Poutine said last month that the country has “competitive advantages” in bitcoin mining. At the time, he also asked the country’s central bank to meet with his government so that they could come to a consensus on cryptocurrencies.
The bills proposed by the Russian Ministry of Finance also fixed the definition of digital mining as an activity aimed at obtaining cryptocurrency.
Minister of Finances Anton Siluanov hopes the regulations will be enacted by the end of 2022, according to a report from the Times of Moscow.
Price action: At press time, 24-hour Bitcoin traded down 6.4% to $36,636.51, Ethereum down 6.7% to $2,542.49, while DOGE fell 9 .1% to $0.13.
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