The chairman of the Russian State Duma Committee on Financial Markets has confirmed that the bill which provides the regulatory framework for cryptocurrencies in Russia has been completed. The official explained key features of the bill, including how cryptocurrency exchanges and miners will be regulated. However, the bill’s adoption has been delayed due to the coronavirus pandemic.
Work on Russia’s Cryptocurrency Regulation Completed
Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, has confirmed that work on the law “On Digital Financial Assets” has been completed, Russian media RBC reported this week. Aksakov, who is also the deputy of the State Duma of the Federal Assembly of the Russian Federation, has been overseeing the drafting of the bill.
The chairman explained that the bill provides the definition of cryptocurrencies and prohibits their use as a means of payment, elaborating:
We came to the conclusion that it is necessary to define these tools but to prohibit their use as a means of payment. The law will define digital financial assets, the procedure for their issue and circulation. It will also include the issue and circulation of digital assets secured by goods.
While noting that cryptocurrency mining is not mentioned in the bill, Aksakov stressed that it “is a type of business that produces value,” so it should be taxed. In addition, he clarified that the new law will not interfere with crypto exchanges if they do not violate any directives, but their activities will be regulated.
Impact of Coronavirus Outbreak on Russian Crypto Bill
While work on the bill to regulate cryptocurrencies in Russia is done, Aksakov explained that its adoption has been delayed due to the coronavirus pandemic, “probably until the end of spring.” The official indicated that “Because of the coronavirus, all legislative processes have slowed down, the focus of attention has switched to priority measures to combat the pandemic,” the publication conveyed.
The bill “On Digital Financial Assets” was first submitted to the State Duma in March 2018. Aksakov said several times in the past that the bill was ready. However, he later explained that due to irreconcilable disagreements in the government regarding this new type of asset, the bill was repeatedly amended and its adoption subsequently delayed. The central bank, for example, has opposed its legalization.
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