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Russians may soon have to take a test to invest in crypto

Russians may soon have to take a test to invest in crypto
Photo Credit: Pixabay
22 Feb, 2022
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The Russian government will require the country’s crypto exchanges to present new customers with an online test, which will evaluate the knowledge of citizens on cryptocurrencies. This is one of the many steps that the Russian Ministry of Finance has suggested as part of its draft law on the regulation of cryptocurrencies in the country.

According to a statement issued by the Russian finance ministry, the online test for Russian citizens looking to invest in cryptocurrencies will look to gauge the scale of knowledge that a person has in this field. If the individual is found to be sufficiently well versed, they will be allowed to invest up to RUB 600,000 (~INR 5.64 lakh) every year in cryptocurrencies. Those who fail the test would be allowed to invest RUB 50,000 (~Rs 47,000) per year.

Russia’s draft crypto law further states that the use of tokens as a currency will not be allowed, and only function as an investment instrument. All exchanges and operators offering cryptocurrency trading will need to be registered, and keep records of details such as “corporate governance, reporting, information storage, internal control and audit, risk management system and the amount of own funds.”

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Russia is also mandating a compulsory customer identification system in order to prevent unidentified crypto investments. The exchanges operating in the country will also be required to consistently inform the Russian finance ministry regarding any suspicion.

The move comes at a time when India is expected to bring forth its own steps to regulate cryptocurrency and the entire space in the country. Most expectations have suggested that cryptocurrencies will not be banned, but regulated from mainstream usage. This would include cryptocurrencies being prohibited from usage as a currency, and leave it only for investment purposes.

At Union Budget 2022, Indian Finance Minister Nirmala Sitharaman further announced a 30% tax on cryptocurrency investments and returns. However, further aspects of India’s crypto bill have not yet been revealed.

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