The Russian finance ministry has proposed legislation regulating cryptocurrency in the country, requiring that investors no longer remain anonymous and that transactions be capped at a certain amount, among other measures. In this episode of “The Crypto Show” on Motley Fool Live, recorded on Feb. 9, Fool.com contributors Jon Quast, Chris MacDonald, and Travis Hoium discuss whether this legislation could provide a regulatory road map for other countries, including the U.S.
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Jon Quast: Moving on to Russia here. This is interesting. We were talking about Russia last week, the No. 3 player in the world when it comes to Bitcoin mining as far as what they supply to the hash rate. Some little bit of volatility in the cryptocurrency market because it seemed like the various parties’ powers that be in Russia were in disagreement over where they were going as a country as far as regulation goes. Actually, this is this morning breaking news that the government and the central bank agreeing that they want to regulate cryptocurrencies, going to actually label it as a foreign currency in lieu of classifying it as a stock or something. Basically, the proposal is transactions of $8,000 or more, currency-adjusted, needs to be reported and exchanges need to be licensed. This sounds like good news if you were wondering about what route Russia was going to take.
Travis Hoium: It’s also probably a framework we can start thinking about in the U.S. The U.S., when I was talking about what regulations are going to be put in place here, it doesn’t seem like there’s going to be any bans or anything like that. But what are the rules? What are the caps on transactions? Do you treat it like a security or like a currency? My argument has long been this is more like a currency. We’ll talk about some of the reasons why I think that when we talk about Solana. But this is interesting that they are putting their stake in the ground. This is the way that we’re going to look at it. Because now as the U.S. tries to think about what their regulations are going to look like, they are now competing against other countries, and you’re even seeing crypto havens pop up in either typically island countries around the world who just want people to move their crypto there to avoid taxes. There’s going to be a lot of cat and mouse here from a lot of different countries around the world.
Chris MacDonald: I know we’re going to touch on another project, XRP, that has had some interesting headlines that — I’m not going to maybe take the thunder away from that story — that might affect regulation as well in terms of how governments and regulators are viewing crypto right now. These are all important developments, even though they’re around the world, for how U.S. lawmakers might view crypto, whether it’s the security or whether it’s a currency.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.