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Putin's orders: Russia's digital bill will not legalize cryptographic payments

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The State Duma Committee of State Construction of Russia was to hold the first reading amendments to the country's civil code regarding the digital currency today, but should not make digital currency a legitimate method of payment, according to Izvestia, the information portal of the Ministry of Technology of the & # 39; 39; information.

The bill, which the State Duma Committee on State Construction plans to support, will establish a legal basis for digital rights and digital transactions, said the head of the State Construction Committee Pavel Krasheninnikov Izvestia.

The experts, on the other hand, regard cryptocurrency as a "promising" entity, which is worthy of being included in the country's legal arena.

Amendments were sent in March to Krasheninnikov and Vyacheslav Volodin, the Speaker of the State Duma.

President Vladimir Putin has previously asked the central bank and the government to provide an assessment of cryptocurrency, including all the risks that it entails and if it is necessary to. use new technological solutions in the banking sector.

The authorities believe that the law will eliminate the risk that digital objects will be used to place assets in an uncontrolled environment, through which the proceeds of crime may be legalized.

Cryptocurrencies users may not be protected due to insufficient regulation, depending on the project.

Although digital currency does not become a legal payment method, it follows from the bill that in the future, these currencies will be used as payment "in controlled quantities". At that time, a separate law from the Ministry of Finance, the Ministry of Economic Development and the Central Bank will establish the conditions under which this payment can take place.

The bill considers the digital confirmation of an identified user as his written consent, used to sign a "smart contract". A transaction is considered complete after the signature and can only be contested in the event of a third party interference. operation of the program.

The bill also legalizes the processing and collection of large amounts of information.

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Russia's digital bill does not legalize cryptocurrencies, although future legislation can do it.

The Duma's legal department was advised to use the concepts of "cryptocurrency" and "token" rather than "digital currency" and "digital law", in the terms used in practice.

The bill does not address all the directives of the president, but it presents the conditions of a new regulation of the digital currency industry, said Igor Sudets, director of the educational program "Blockade for Lawyers "from the Russian University of Economics Plekhanov.

Because crypto-currencies and tokens are currently outside the legal arena, they can be used for bribes, withdraw funds from bankruptcy, pay "black" wages, said the Sudetenlanders.

If cryptocurrency is not legalized in one form or another, Russia will miss the opportunity to withdraw from the shadows and consolidate a number of serious financial flows on its territory, believes the expert.

Yelena Tsaturyan, Legal Counsel for KSC Groups, said that a cryptocurrencies regulation should be a positive development. In Japan, cryptocurrencies have received legal status as a payment instrument, while the European Union has recognized bitcoin as currency for tax purposes.

Tsaturyan said that Russia could not ignore the legal status of cryptocurrency. She said that it is a "contradictory situation" where the state does not recognize the bitcoin but the revenues from the digital currency transactions are taxed. She said that digital currency should be introduced into the circulation.

The bill should be considered at a plenary session next week.

Pictures of Shutterstock

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