The Lower House of the Russian Federation has voted to enact a law on ‘digital economy’ which will come to effect from October 2019. President Putin had asked the Federation to draft a bill related to digital assets so that they can be regulated in Russia. The Federation recognized the widespread use of Blockchain and cryptocurrency in Russia, and have hence, included it in the Russian Law.
The law is passed to regulate the Bitcoin and cryptocurrency markets in Russia while providing conditions for introduction and transaction of the same. The Russian senate has also envisioned the ‘tax regime’ is a relation to such digital assets.
However, the bill is introduced as a series of norms for the citizens rather than a direction to the executives; regarding the responsibilities of the citizens while using such ‘digital assets.’
Vyacheslav Volodin, Chairman of the Russian State Duma, said the digital rights law “forms the basis for the development of the digital economy. This is a new area for our rights, thus it is important for us to consolidate the basic concepts.”
Cryptocurrencies are Digital Rights, Not Money
According to the Senate, the law on digital rights will apply to ‘digital money’ as well. The bill specifies that: the creation of digital rights, the scope of their use and turnover will be determined by federal laws containing regulations public law and developed with the participation of the Bank of Russia, Ministry of Finance, Ministry of Economic Development and other departments.
According to the new law, ‘digital rights’ rules will apply to ‘digital money (or cryptocurrencies).’
The law also established that ‘digital money’ or more commonly cryptocurrencies are not legal means of payments. Nevertheless, individuals and entities can accept it as a means of payment in controlled quantities.