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Russia May Soon Formulate Cryptocurrency Law

Sandeep Kumar Mishra by Sandeep Kumar Mishra - 03:26 PM Jan 14, 2020
russia-may-soon-formulate-cryptocurrency-law

Russia’s State Duma, the parliament’s lower house, could soon bring in cryptocurrency law to regulate digital financial assets. The bill could be introduced in the parliament during the spring season.

Legal Framework for Digital Assets

Although Russia had defined smart contracts in the recent “digital rights act”, companies don’t have the authority to tokenize their assets legally in the country. However, the situation might soon change for the better as the country’s lower house of parliament would vote on digital financial assets. The Chairman of the State Duma Committee on the financial market, Anatoly Aksakov, is confident that the law would be adopted during the spring season.

“Blockchain to Help with Better Sale of Goods”

According to Aksakov, Russian businesses would benefit from the cryptocurrency law is it would help them leverage blockchain to organize the sale of their goods more efficiently, especially raw materials. Cryptocurrencies in Russia are not subject to any prohibition, which means that people are free to trade them. However, regulators, ministries, departments, and courts might bring in restrictions. Thus, the law is critical for businesses to flourish. Aksakov further stressed that the law would provide more clarity on cryptocurrency regulation news.

Tracing the Bill’s Journey

The parliament adopted the first reading of the bill in May 2018. The bill defined digital assets, including cryptocurrencies. Also, the bill introduced the concept of smart contracts. Although Russia’s prime minister Dmitry Medvedev entrusted the government to finalize the bill by November 2019, disagreements regarding the legalization of cryptocurrencies have so far impeded the bill’s adoption. On the contrary, the Central Bank of Russia was considering to place a blanket ban on crypto payments in the country in November last year. Rumours circulated that criminal penalties could carry prison terms of 5-8 years. Russia’s central bank had also clarified in a statement that Ruble was the only official legal tender in the Russian Federation. The cryptocurrency law would, therefore, bring a sigh of relief to the crypto enthusiasts in the country.

About The Author
Sandeep Kumar Mishra

Sandeep Kumar MishraSandeep is an avid cryptocurrency enthusiast and a keen & passionate blogger. He loves to keep track of the latest social media trends and other hot topics in the digital marketing space. Also, he has a knack for sharing crypto and blockchain-related updates with passionate readers like yourselves. You can follow him on LinkedIn and Twitter, too if you like his content.

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