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Friday, 26 January 2018

Russia Finally Prepares Cryptocurrency Regulations


The Russian Government is in the process of finalizing regulations for cryptocurrencies and initial coin offerings.


The Russian Government has published the draft of the Federal law regulating Bitcoin named 'On Digital Financial Assets'.

The draft law was introduced toward the end of December 2017, and was followed by much debate and amendment before being released on Wednesday to the public. Article 5 of the document says; “This federal law shall enter into force 90 days after the date of its official publication.”

According to the draft' 'This federal law regulates the relations arising in the creation, issuance, storage and circulation of digital financial assets, as well as the exercise of rights and performance of obligations under smart contracts.'

The draft also provides Russia's official cryptocurrency definitions.

Cryptocurrency is defined as “a type of digital financial asset created and accounted for in the distributed registry of digital transactions by participants in this registry in accordance with the rules of maintaining the registry of digital transactions.” Meanwhile, a token is defined as “a type of a digital financial asset that is issued by a legal entity or an individual entrepreneur (hereinafter referred to as an issuer) in order to attract financing and is recorded in the registry of digital records.”

As for mining, it is deemed “an entrepreneurial activity aimed at creating a cryptocurrency and / or validation in order to receive compensation in the form of a cryptocurrency.” Mining activities are subsequently described as “legally valid” actions.

The documents states that Russians have the right to trade cryptocurrencies for fiat by stating; "Holders of digital financial assets have the right to make transactions for the exchange of digital financial assets of one type for digital financial assets of another type and / or the exchange of digital financial assets for rubles, foreign currency and / or other property only through the exchange operator of digital financial assets".

“Citizens of Russia will be able to buy and sell cryptocurrencies and tokens only through professional participants of the securities market,” Forbes Russia stated.

The document also spoke about exchanges stating that operators must be legal entities. This is after giving the definition of crypto-exchanges.

It however stated that "The exchanges must be “established in accordance with the legislation of the Russian Federation and carry out the types of activities specified in Articles 3 to 5 of Federal Law No. 39-FZ of April 22, 1996 ‘On the Securities Market’.” Alternatively, they can also be “legal entities that are the organizers of trade in accordance with the Federal Law of November 21, 2011 No. 325-FZ ‘On Organized Trading’.”

SEE ALSO: 57 Ukrainian Officials Declare Over 20,000 Bitcoins

What are your thoughts on the regulations? There is more to the regulations, just hang on to Mntrends Blog for information on Russia's regulation on wallets and tokens. Subscribe to our newsletter and like our Facebook page, Mntrends Blog

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