RUSSIA — The Internet Development Institute (IID) has asked President Vladimir Putin to change the country’s outlook on blockchain technology. The story reported by the Russian CNews publication claims the group shows a strong interest in the innovations cryptocurrencies have to offer including crowdfunding, freelance work, and paying taxes. The roadmap and regulation changes describe a schedule of events with the use of digital currency within the region and has been submitted for Putin’s approval.
“The package of measures” Implementation of information technologies in the financial and economic complex relationship” — Internet Development Institute
“Economics and Finance,” a paper that describes an expanded roadmap of internet programs such as cryptocurrency and distributed ledger technology, was allegedly submitted to government officials in Russia on December 22, 2015, with hopes for legalization. It gives legislated framework for the technology up until the year 2025, and lawful use of the blockchain should come into effect in 2017. The author makes a strong notation that Bitcoin and the blockchain are two very distinct technologies saying, “Blockchain – is not the same thing as Bitcoin, a revolutionary technology of distributed databases that could be helpful to banks and organizations that work with securities.”
Paying taxes is mentioned in the first part of the report that details a proposal related to the amendments to the laws “On National Payment System,” and “On counteraction to the legalization of proceeds from crime and terrorist financing,” (laundering). It’s proposed for this technology that taxes could be paid without authentication and additionally identification. Distributed networks could also be applied to multiple applications, including court fines and business loans, and the report explains they would like to see changes like this take effect between the months of March through October 2016.
The next market Russia could benefit from is the economy of freelancers and private contractors. The report says, “to help freelancers By September 2016 mechanisms should be developed to facilitate the identification of individuals – contractors providing remote services via the Internet (freelancers).” There must be a simplified procedure for tax collectors the author states and collecting them from freelancers is not that easy. “In Russia, telecommuting via the Internet is very popular, but not so profitable to recoup all the necessary paperwork for its legalization,” the IID representative said. In addition, to this freelance activity, private contractors could also benefit when pooling together for startup projects.
Crowdfunding is also discussed in the report as being more accessible to people utilizing digital currency. The current legal framework for this type of funding is typically quite difficult due to regulations. The researchers say that due to these policies a resident from Kamchatka, for example, cannot invest in a sanatorium in the Crimea and they say “We want to change this situation.” They feel the measures are “premature” and serve the banking system with “paralysis.” Interest the researchers state is growing within charitable giving and crowdfunding sectors, and these “tools” can help the process.
Russia has been back and forth with the legalities for quite some time. It seems that legacy banks show strong interest in this technology like the finance giant Sberbank and the government does not. The authorities’ stance on the currency and blockchain has been somewhat dismal to say the least and laws against its use have been written. It has not been confirmed by CNews if Vladimir Putin has seen the document yet. It can be confirmed that a lot of citizens and organizations residing in the country do support the technology.
What do you think about Russia’s regulatory measures? Let us know in the comments below!
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