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Regulation

Newly Introduced Bill Gives hope of cryptocurrency Legalization in Russia

March 27, 2018

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A new bill has been introduced into the Russia’s parliament. And the bill defines terms like “digital money” and “digital rights”. The law amends Russia’s Civil Code to create a basis for “legal relations in the digital economy”. The draft is co-sponsored by the Speaker of State Duma, Vyacheslav Volodin, and the head of the parliamentary Legislation Committee, Pavel Krasheninnikov

A bill has already been filed about a week ago, prepared by the Finance Ministry. In its latest version, the law “On Digital Financial Assets” regulates initial coin offerings and crypto mining, but bans cryptocurrencies according to its critics. The fate of cryptos, like bitcoin, will be decided by the Central Bank of Russia (CBR), which has repeatedly opposed their circulation and exchange in the country.

However, In the new law, cryptocurrencies are referred to as “digital money”, Rossiyskay Gazeta reports. According to its authors, it’s necessary to legally define cryptos and other “digital” terms to ensure that the legal rights of participants in virtual transactions are protected.

Moreover, the draft reads that their acceptance for payments, deposits, transfers and as units of account will not be obligatory in the Russian Federation. However, it also provides for the use of cryptocurrencies as means of payment when that’s technically possible and risks are excluded.

Pavel Krasheninnikov said:

“In perspective, digital money will be used as a payment instrument, but only in cases and on terms established by the law,”

Quantities will be controlled and users’ information will be collected. Lawmakers claim this will allow authorities to track cryptocurrencies in cases of bankruptcy and also apply inheritance rights.

Read Also: Why UK Government is Calling for Proportionate Crypto Rules

If adopted, the new digital economy law should enter into force by May 1, 2018. If the latest bill wins support in parliament, cryptos may be accepted as means of payment in Russia after all.

But wait, do you see the possibility of that? Say someday, crypto would be legalized in Russia? Drop your comments below and subscribe to our newsletter for more latest crypto news.