Russia May Soon Formulate Cryptocurrency Law

Russia can soon formulate cryptocurrency law

Sandeep Kumar Mishra
by Sandeep Kumar Mishra –

15:26 PM January 14, 2020


The Russian State Duma, the lower house of the parliament, could soon introduce cryptocurrency legislation to regulate digital financial assets. The bill could be introduced to parliament in the spring.

Legal framework for digital assets

Although Russia had defined smart contracts in the recent "digital rights law", companies do not have the authority to legally token assets in the country. However, the situation could improve quickly, because the House of Representatives would vote on digital financial assets. The Chairman of the State Duma Committee for the Financial Market, Anatoly Aksakov, is convinced that the law would be passed during the spring.

"Blockchain to help with better sales of goods"

According to Aksakov, Russian companies would benefit from the cryptocurrency law because it would help them to use blockchain to organize the sale of their goods more efficiently, especially raw materials. Cryptocurrencies in Russia are not subject to a ban, which means that people are free to trade them. Regulators, ministries, departments and courts can, however, impose restrictions. That is why the law is crucial for businesses to flourish. Aksakov further emphasized that the law would provide more clarity about news about cryptocurrency regulations.

Follow the journey from the bill

Parliament approved the first reading of the bill in May 2018. The bill defined digital assets, including cryptocurrencies. The invoice also introduced the concept of smart contracts. Although Russian Prime Minister Dmitry Medvedev has entrusted the government to finalize the bill by November 2019, disagreements over the legalization of cryptocurrencies have so far impeded the adoption of the bill. On the contrary, the Central Bank of Russia considered introducing a general ban on crypto payments in November last year. Rumors circulated that criminal penalties could have a prison sentence of 5-8 years. The central bank of Russia 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 enthusiast of cryptocurrency and an enthusiastic and passionate blogger. He likes to keep up with the latest trends in social media and other current topics in the digital marketing space. He also has a talent for sharing crypto and blockchain related updates with passionate readers like you. You can also follow him on LinkedIn and Twitter, if you like his content.

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