Duma, a Russian State has finally given the approval of the first reading of the most awaited legislation package that regulates cryptocurrency related topics. Under a few conditions the legalization of cryptocurrency, their exchange and circulation have been granted by the Russian Federation.
In a speech during the plenary session of the St. Petersburg International Legal Forum, Prime Minister Dmitry Medvedev, said:
“We need to consolidate the basic provisions and translate them into the language of the law. Therefore, instead of common slang expressions such as “cryptocurrencies” and “tokens”, lawmakers are developing the more strict legal concepts of “digital money” and “digital rights”.”
The bill regulates three things: Crypto Assets, Crowdfunding, and Digital Rights. The new legislation incorporates legal concepts like “digital right” and “smart contract” and defines cryptocurrencies and tokens as property, not as legal tender. Any other amendments may be introduced in the next couple of weeks.
According to Russian media reports, the draft states that crypto purchases and sales should be performed only through providers of exchange services for digital financial assets such as brokers, dealers, and corporate entities who act as custodians. Even the cryptocurrency exchanges will have to offer individual accounts and wallets to their customers. The rules governing these tasks will be developed by the Central Bank and the Council of Ministers.
Dumas Head of the state committee, Anatoly Aksakov, during the discussion of the law regarding cryptocurrency, proposed to introduce a tax rule for miners. He believes that miners should pay taxes. He exclaimed:
“If it is a small business, small volumes, then – a simplified taxation system. Large business – the usual taxation, income tax, can, VAT “
The Chairman of the Expert Council on Legislative Provision of Financial Technologies proposed to introduce the law of provision which provides for the creation of crypto-exchanges whose activities would allow the exchange of crypto-currency for fiat.
The official page of The State of Duma tweeted:
“# Sitting : The bill on “digital rights” passed the first reading”
Along with this, they attached the article of the approved bill.
Irrespective of all the rules and regulations implied, Russian state Duma is keen on stepping into the crypto world or as they say “Digital currency universe”.