Russia’s Finance Ministry submitted draft cryptocurrency regulations to the country’s government on Monday — 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 do away with the current ban on cryptocurrency payments for goods and services and cap the amount Russians can invest in cryptocurrencies at RUB 600,000 ($7,484).
Citizens would be required to undergo an online test before they can purchase cryptocurrencies to gauge their risk awareness. Those who fail the test can only invest up to RUB 50,000 ($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 client is identified.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: After China imposed a ban on cryptocurrency mining last year, cryptocurrency miners flocked to North America, Russia and Kazakhstan.
Russia’s President Vladimir Putin said last month that the country has “competitive advantages” in Bitcoin mining. He, at the time, also asked the country’s central bank to meet with his government so they might arrive at a consensus on cryptocurrencies.
The draft laws proposed by the Russian finance ministry also fixed the definition of digital mining as an activity aimed at obtaining cryptocurrency.
Finance Minister Anton Siluanov hoped the regulations will be passed into law by the end of 2022, according to a report from The Moscow Times.
Price Action: At press time, over 24 hours, Bitcoin traded 6.4% lower at $36,636.51, Ethereum was down 6.7% at $2,542.49, while DOGE dropped 9.1% to $0.13.