Financial Crime World

Russian Tax Service Registers Cryptocurrency-Based Entity

=====================================================

In a significant move, Russia’s Federal Tax Service has officially registered a new entity with a nominal capital contribution made in cryptocurrency. While this development does not create legal precedent or formal recognition of cryptocurrencies, it reflects the growing acceptance of digital assets and their potential impact on the country’s financial landscape.

Online Lending: New Opportunities for Fintechs

The Russian regulatory environment has also undergone changes that could benefit fintech companies operating in the online lending space. According to new rules, microfinancing organizations (MFOs) can now offer remote identification services to borrowers, a move previously limited to larger MFOs.

Key Changes

  • Microfinancing organizations can now offer remote identification services to borrowers
  • Fintechs interested in online lending may take advantage of a special regime for MFOs with reduced regulatory burdens and lighter treatment from the Central Bank
  • The regime is divided into two categories: microcredit companies (MCCs) and microfinancing companies (MFCs)

Payment Services: New Regulations for Fintechs

The Russian government has also introduced new regulations for payment services providers. The Federal Law “On National Payments System” sets out a detailed framework for payment services, including requirements for national payment system participants such as payment systems operators, electronic money operators, and money transfer operators.

Key Changes

  • Non-bank credit organizations can now perform cashless payments without opening bank accounts, using e-wallets
  • The Central Bank has established a register of foreign payment systems operators, which must submit registry applications through a Russian subdivision
  • Fintechs operating in the payments space must comply with new regulations and requirements

Challenges and Opportunities for Fintechs

As Russia’s fintech industry continues to evolve, entrepreneurs may face challenges in navigating the regulatory environment while finding opportunities for innovation. O2 Consulting, a leading provider of legal services for the Russian digital economy, is well-positioned to deliver practical advice and solutions for local and international clients.

Contact Information