Russia Is Planning to Enact Three Crypto Laws by the 1st of November
At this moment in time, we are all accustomed to Russia’s love-hate relationship with digital currencies. For a while now, cryptocurrency enthusiasts in Russia have been living in a state of confusion, unaware of the government’s plans towards the market, despite several statements made by the President and several ministers.
Things are about to change now, given that recent reports indicate that the Russian Duma is preparing a legislative framework consisting of 3 crypto-related laws. As such, rumours indicate that cryptocurrencies will now be regulated under three categories, these being virtual assets, digital finance assets and technical tokens.
The main argument behind this category-based regulation is the fact that Russians use cryptos differently. Some coins are used to make payments, whereas others are used as investment assets. Lack of clarity disables efficient governance of crypto assets, thus being responsible for the negative attitude that we have seen in the last couple of years.
It is believed that the new regulatory framework will give the government more control over crypto-based transactions, thus allowing them to tax the usage of digital currencies, while also ensuring that users respect all anti-money laundering initiatives.
Here are some examples meant to explain how digital currencies will be classed: virtual assets refer to cryptocurrencies which facilitate the transfer of value, like Bitcoin, Bitcoin Cash and Litecoin. Technical tokens stand for assets that also serve a technical purpose, such as Ether, since the entire Ethereum blockchain requires the existence of Ether to ensure that it can run. Last but not least, digital finance assets refer mostly to investment-based tokens, such as those from Initial Coin Offerings, or Initial Securities Offerings. This separation of tokens enables the Russian government to apply specific legislation to each type of digital asset, thus ensuring a smoother regulatory process and oversight for financial authorities.
Luckily, there are no reports concerning a cryptocurrency ban as it has been rumoured before. However, intensive regulatory frameworks cannot technically affect digital currencies, since users are still free to use them as they wish. Rather, it creates responsibility for users to willingly respect the newly-enacted laws.
So far, it seems that these future laws are acceptable and do not attempt to limit the popularity of the crypto market. Reports also indicate that Russia is planning to regulate smart contracts and digital rights, thus further advancing the development and use of blockchain technology in the region. It wouldn’t be surprising if Russia decides to completely change its attitude, thus becoming one of the world’s crypto and blockchain hubs.
President Putin has constantly urged officials of the legislative body to hurry up with crypto regulations. These new laws will likely be enacted starting the 1st of November this year.