According to the ‘Most’ Telegram channel, the leader of the unrecognised PMR, Vadim Krasnoselsky, signed a local law on 12 October entitled ‘On Digital Currency and Activities Involving Digital Currency’. It sets out rules for the purchase, sale and exchange of cryptocurrency in the region, rules governing the operation of ‘digital currency exchange operators’, and also prohibits mining.
Key provisions of the law
According to the channel, the law provides for the creation of a special regulator – an ‘authorised body’ – to be designated by the government of the unrecognised PMR. It will oversee cryptocurrency exchanges, issue licences to them, maintain a register and supervise the circulation of cryptocurrency.
Cryptocurrency exchanges will only be able to carry out business activities involving cryptocurrency under a licence issued by the ‘authorised body’ for a period of one year. To obtain such a licence, a company must have a share capital equivalent to at least $1 million. Furthermore, the exchange must maintain a minimum balance of $300,000 in its bank account at all times. The use of borrowed funds to form the authorised capital is prohibited.
Exchange operators will be able to buy and sell cryptocurrency for ‘Transnistrian roubles and foreign currency’, as well as exchange one cryptocurrency for another. They will only be able to serve private individuals. Operators must keep records of cryptocurrency transactions to enable ‘financial monitoring’ by the ‘authorised body’. Information systems processing customers’ personal data must be hosted on servers within the region.
At the same time, the use of cryptocurrency to pay for goods and services within the region will be prohibited. The ban also applies to transactions between individuals where cryptocurrency is used as a means of payment.
Legal entities and sole traders will be prohibited from holding cryptocurrency and using it to attract investment.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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