Blockchain, Crypto 101, Cryptocurrency, News & Updates

Putin signed on digital assets law

The President has signed the bill raised about digital assets in Russia, Vladimir Putin. This took place last July 31, 2020. The parliament has approved, which will allow companies to issue digital securities on the blockchain—provided that they are registered in partnership with Bank of Russia properly as issuer and meets the criteria required.

This is even if Elina Sidorenko, head of the Working Group on Estimated Risk of Cryptocurrency Turnover in the Duma previously believes the reactions reflect thinking in the industry at the moment the proposed regulation is not yet ready to be adopted.

Russia changed the draft bill about regulating crypto and digital assets. As previously, the draft bill makes any Russian-based business issuing or trading crypto as illegal infrastructure. The changes have made it neutral to both parties. It suggested that a crypto is a form of property that can not be accepted as a means of payment. However, it can be inherited, distributed to the debtors of a bankrupt company, or confiscated as a result of a court decision. The courts can only consider any lawsuits related to crypto ownership if crypto holdings deal with tax purposes.

The bill signed deals with decentralized cryptocurrencies that are considered as a property that should be reported for tax purposes and cannot be accepted as a means of payment. More law regulation for crypto-related businesses will be aimed to be passed on the latter part of the year 2020. However, there has been no timeline disclosed.

This has provoked the battle between the crypto community and criticisms from the Ministry of Justice and the Ministry of Economic Development of Russia. Government official Dmitry Marinichev, however, said that “The state should not be afraid of the future and prohibit the innovation, it should be ready to change and help people feel comfortable in the new digital world.”

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