New bill Plans to Permit Crypto Payments in Russia

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Brand New Bill Aims to allow Cryptocurrency Payments in Russian Federation

A draft law is planning to secure the rights of owners of digital currencies, while regulating their use for payments, has been presented in Russia’s parliament. The bill clarifies terms like “digital money” and “digital rights.” It also empowers officials to subject cryptocurrency to taxation, inheritance rights, and bankruptcy claims.

“Digital Money” to Be Legal Means of Payment

The law amends Russia’s Civil Code to form a support for “legal relations in the digital economy.” The draft is co-sponsored by the Speaker of State Duma, Vyacheslav Volodin, and the head of the parliamentary Legislation Committee, Pavel Krasheninnikov. Their drive effectively sanctions financial transactions in the digital environment.

Bill №424632-7 has been documented about a week after the introduction of bill №419059-7, arranged by the Finance Ministry. In its newest version, the law “On Digital Financial Assets” manages initial coin offerings, and crypto mining yet bans digital currencies according to its pundits. The destiny of cryptos, like bitcoin, will be chosen by the Central Bank of Russia (CBR), which has regularly questioned their circulation and exchange in the country.

In the new law, digital currencies are alluded to as “digital money,” Rossiyskay Gazeta reports. As per its authors, it’s important to lawfully define cryptocurrencies and other “digital” terms to guarantee that the legitimate rights of members in the virtual transaction are secured. The draft reads their acknowledgement for payments, deposits, transfers and as units of account won’t be necessary for the Russian Federation. However, it likewise provides for the utilization of digital currencies as a method of payment when technically conceivable, and dangers are prohibited.

Pavel Krasheninnikov said, “In perspective, digital money will be used as a payment instrument, but only in cases and on terms established by the law.” Quantities will be controlled, and client’s data will be gathered. Lawmakers claim this will enables officials to track digital currencies in an instance of bankruptcy and also apply inheritance rights.

Changes to Be Implemented by May

The legislation is assumed to promote digital deals like smart contracts. Digital affirmation will be as authentic as written statements and signatures. The law of digital rights creates the basis for a taxation mechanism in the virtual space. It likewise provides for applying measures to restrict the laundering of funds procured through unlawful means.

If chosen, the new digital economy law should enter into force by 1st May 2018. Supplementary regulation will decide distinctive parts of the digital rights and the circulation of digital currencies. They will be improved with the support of the Central Bank of Russia and the Ministries of Finance and Economic Development.

The legitimate status of digital currencies has turned into the point of the regulatory debate in Moscow. Prestigious institutions, like the Finance Ministry and the CBR, have sometimes expressed distinctive opinions on the issue. The recommendation is running from permitting free crypto trade to introducing an outright prohibition and even criminal liability for unauthorized circulation of money surrogates. If the latest bill wins support in parliament, cryptocurrencies might be acknowledged as a method of payment in Russia after all.

Garry Singh

Garry is an experienced entrepreneur, and co-founder of a UK based technology company Quickdesk Solution Ltd., with a demonstrated history of working in the information technology and customer services industry. Skilled in technical writing, he is a strong business development professional with a Bachelor's Degree focused in Information Technology and Masters in Business Administration.