Russia will follow the Treasury Department’s suggestion to regulate bitcoin and cryptocurrencies rather than ban them as previously recommended by the central bank. The Russian government released a document on its official website on Tuesday evening outlining the rationale behind the decision and what plans for the legislation could look like, marking a consensus reached with a Bank of Russia that oversaw trade and mining for weeks. to be banned completely. while “protecting the rights and interests of the investors,” while splitting them between “qualified” and “unqualified” investors, the document said. On January 20, the Bank of Russia proposed a blanket ban on the mining and use of bitcoin and cryptocurrencies, citing concerns that the activities could pose risks to the country’s financial stability. The Treasury Department opposed the central bank’s suggestion on Jan. 25, warning that a complete ban on bitcoin mining and trading could leave Russia lagging behind in innovation in the tech industry. On January 26, Russian President Vladimir Putin said in a meeting with government officials that despite the risks warned by the central bank, the country had some competitive advantages in bitcoin mining due to its surplus of power and skilled workforce. Putin also asked the two entities to agree on the direction of Bitcoin regulation in Russia. In the two days since Putin’s comments, the Russian government has drawn up a roadmap for cryptocurrency legislation that would boost industry developments and ensure regulators have restrictions and the collection of taxes due on transactions. The new document published yesterday reflects that intent as it realizes that Bitcoin cannot be stopped and instead seeks to enact laws and restrictions to empower watchdogs and ensure that the government pays the debt owed by citizens and businesses. gets taxes. State efforts will also include licensing exchanges and banks interested in providing Bitcoin services to ensure they have “liquidity cushions,” the document said. Only licensed financial institutions have the right to open cryptocurrency-related accounts for individuals. The document also foresees the use of a “transparent Blockchain” surveillance system, which would monitor people, organizations and wallets who own or deal with cryptocurrencies in Russia. Transparent Blockchain can create models between different transactions and scan the internet and darknet to reveal wallets related to suspicious activities including money laundering, terrorist financing and arms distribution in the country. It seems that individuals can use self-custody wallets, but must register them in advance with the transparent blockchain in order to connect the wallet to the person using it. Foreign exchanges interested in providing cryptocurrency services in Russia must also adhere to local regulations, including the need to have a representative in Russia and implement a system to prevent customers from withdrawing funds into wallets. that are not registered with the Transparent Blockchain System. The new Russian regulations would treat Bitcoin in the same way as a foreign currency, according to a report by local newspaper Kommersant. At least some of the new legislation is expected to come into effect in the second half of 2022 or next year, the report said. With help from Andrew Fischer.