Important Cryptocurrency Laws: What Awaits Russia on July 23, 2024?
On July 23, 2024, the Russian State Duma is expected to pass two significant laws that will greatly impact the cryptocurrency industry in Russia. The first law will legalize and regulate mining, while the second will establish an Experimental Legal Regime (ELR) for cryptocurrencies.
Mining Law: Opportunities and Restrictions
The mining law will allow miners to officially mine and sell cryptocurrency, pay taxes, and have their own OKVED (Russian Classification of Economic Activities). This will increase market liquidity. However, the law contains some controversial provisions:
- Sale of cryptocurrency only outside Russia: This could lead to capital outflow from the country. We are working with the Central Bank and the Ministry of Finance to improve this provision by the second reading.
- Ban on advertising, trading, and using Russian infrastructure for cryptocurrencies: We hope these restrictions will be eased in the second reading, as we are working with ministries to establish standards.
Experimental Legal Regime (ELR)
The ELR law will give the Central Bank the authority to establish experimental regimes for cryptocurrency trading in Russia. However, KickEX will not be included in the ELR because it is a foreign company, and companies in the ELR will immediately face sanctions.
Why is this happening?
Sanctions, SWIFT ban, and cross-border payment issues. Legalizing cryptocurrency will help facilitate cross-border payments.
Prospects for KickEX
Is this bad for KickEX? Not at all. It means that Russia will have a major liquidity provider integrated with foreign companies and market makers. The liquidity in Russia could reach hundreds of billions of dollars per day. ELR exchanges will need foreign brokers who are willing to work with Russian money, which opens up significant opportunities for KickEX.
What Should Our Community Expect?
KickEX users should be pleased. If the laws pass their first readings on July 23, it will be a major step forward for the cryptocurrency industry in Russia. The first reading is crucial; subsequent readings will only make minor adjustments. If a law passes the first reading, it is almost certain to be adopted.
With a little patience, KickEX will become a leading market maker, and you will be part of this success story.
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