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Why are Russian Legislators Changing Their Cryptocurrency-Specific Language?

Why Are Russian Legislators Changing Their Cryptocurrency-Specific Language?

Russian legislators favor a change in the cryptocurrency-specific language in the proposed bills governing the sector. The country’s Duma Financial Market Committee’s head, Anatoly Aksakov, indicated that the laws are going through the second round of review process by the State Duma. The objective of the bills is to regulate the digital currency market in the country and considerable changes were seen to be added to the draft laws. Still, some of them see it as not clear for regulating the market.

Second Review

The local outlet, Kommersant, pointed out that currently there are three draft laws that are getting ready for consideration in the State Duma. The bills are ‘On Digital Financial Assets (CFA), and ‘Crowd Funding.’ This included the terms of an issue any digital tokens, as well as, its circulation. Aside from these, the third bill focused on the package of amendments to the Russian Federation’s Civil Code. According to ethnews.com, it would be the second review of the planned laws of the State Duma. In March, the first review was submitted for consideration.

The planned changes will focus on the terms like “digital currency” or “digital money” and the objective is to replace them with “digital rights.” The proposed changes will not only reflect in these bills but also in other legal documents in future if it relates to any regulation in respect of the digital currencies. Incidentally, the term of digital rights will not be considered like the previous one by the Russian Ministry of Justice. If the report is correct, then it is quite possible that a single term would be used to reflect “token exchange operator” or “investment platform.”

The revised bills could be adopted by the Legislature in Russia before the end of the current month or July 1. Once the bills become the law of the land, Aksakov indicated that the country would have to modify something in respect of the tax code. This is required to illustrate the rights of the digital coins and the way it would be treated for the purposes of tax.

However, there is no clarity in respect of the intentions to change the terms in the proposed bills. This included the impact of the changes that would have on the digital currency industry in the country and the way the tax code would be treated with virtual currencies.

Relationship Is Unsteady

Currently, Russia is undergoing a tremendous amount of confusion as far as the cryptocurrency market is concerned. This was also quite evident when different people started speaking at different tones thus bringing it to open the differences among them. For instance, the country’s president, Vladimir Putin, emphasized the position of the central bank in stating that digital currency is not a secured one and that it could not be treated as a payment method. He was also against the hoarding of virtual currency.

While this is going on, the country is also focused on passing three bills. That only indicated that the relationship between the establishment and the digital coin market is not steady.

About the author

Ahmed Habib

Ahmed is a Software engineer by profession. At a very young age he got his hands on the tech and gadgets and now cryptos have taken on his mind. From mining to working of the blockchain, he is after everything.

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