Russia entertains New bill to regulate Cryptocurrency

A new bill has been drafted in the Russian Federation which aims to recognize cryptocurrency as a legal means of transaction. The goal of the new bill is to help protect consumer’s rights while also regulating their transactions in Russia.

The new bill co-sponsored by the head of Russian parliamentary Legislation Committee, Pavel Krasheninnikov and the Speaker of State Duma, Vyacheslav Volodin defines cryptocurrency as “digital money” therefore it is subjected to taxation, inheritance and bankruptcy claims.

Calls to regulate Cryptocurrency in Russia

With the current increase in the call for regulation of the cryptocurrency industry globally, the Central Bank of Russia (CBR) will decide the fate of bitcoin. The CBR has repeatedly opposed the circulation and exchange of cryptocurrency in the country. However, speaking at the legislation on Monday, Pavel Krasheninnikov. “In perspective, digital money will be used as a payment instrument, but only in cases and on terms established by the law.”

This could mean that the use of bitcoin and other cryptocurrencies as a means of payment would be accepted when all technical risks are removed. Although, issuance, transfer or deposit of cryptocurrency in the Russian Federation is not obligatory, “the regulation of digital rights creates a basis for a taxation mechanism in the virtual space.

It also makes provision for “measures to prevent the laundering of funds acquired through illegal means.”

Cryptocurrency Regulation in Russia may happen soon

Quantities will be controlled and users’ information will be collected. Lawmakers claim this will allow authorities to track cryptocurrencies in cases of bankruptcy and also apply inheritance rights. If the bill is eventually adopted, the law would be implemented on May 1, 2018, it would be developed with the Central Bank of Russia and the Ministries of Finance and Economic Development in participation.

Other proposals awaiting ratification of the Russian Legislation includes the bill to ban cryptocurrency totally or even make it a criminal offense to transact with it.

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