Russian legislators plan to imminently pass four proposed laws aimed at regulating different facets of cryptocurrencies. Anatoly Aksakov, a prominent figure among the lawmakers, stated that notable Russian corporations are presently engaging in the extensive utilization of cryptocurrencies for foreign trade settlements. However, they are seeking clear legal guidelines through legislation to govern such transactions as Russian companies are actively using Bitcoin. Aksakov made these comments during his speech at the St.
End of July Deadline for Legislative Vote
By the conclusion of the spring session on July 30, the State Duma, Russia’s lower house of parliament, is set to vote on four cryptocurrency-related laws. Anatoly Aksakov, the chairman of the Financial Market Committee, confirmed the legislative plans, highlighting that the proposed bills aim to regulate various aspects of the crypto industry since Russian companies are actively using Bitcoin.
These include regulations pertaining to cryptocurrency mining, cross-border crypto payments, taxation of digital assets, and the legal consequences of their illicit use. Aksakov further emphasized that the draft laws have been meticulously crafted and carefully considered. The details were provided by the lawmaker in an interview with the Interfax news agency.
Petersburg International Legal Forum
During his address at the Petersburg International Legal Forum, Anatoly Aksakov provided an update on the progress of the proposed legislation, stating that the four bills are currently undergoing practical adoption procedures. Aksakov expressed optimism about the possibility of adopting all the laws during the spring session. Furthermore, he emphasized the importance of considering the input and perspectives of market participants, particularly in relation to tax regulations. Aksakov indicated that the authorities aim to incorporate provisions that align with the norms applicable to Digital Financial Assets (DFAs), as they are considered a comparable instrument in this context.
Government Considering Market Participants’ Opinions on Tax Rules
During his speech at the St. Petersburg International Legal Forum, Anatoly Aksakov acknowledged that prominent Russian companies are actively using Bitcoin for foreign trade settlements. However, he emphasized the need for legislation that establishes a clear legal framework for such transactions. Aksakov indicated that significant progress had been made, with four bills currently in the practical adoption stage. He expressed optimism about the potential adoption of all these laws during the spring session.
In addition, Aksakov highlighted the authorities’ intention to consider the viewpoints of market participants regarding tax regulations. He explained that the norms applicable to Digital Financial Assets (DFAs) are likely to be taken into account as they share similarities with cryptocurrencies. Aksakov further mentioned that the law “On Digital Financial Assets” (DFAs), which came into effect in January 2021, covers specific crypto-related activities, particularly those involving digital assets with an issuing entity, such as tokenized traditional assets or utility tokens.
Simultaneously, the comprehensive regulation of transactions involving decentralized cryptocurrencies such as Bitcoin remains pending in Russia. The intensified efforts of Russian authorities in this regard are partially motivated by increased pressure from Western sanctions imposed due to Russia’s invasion of Ukraine.
In conclusion, Russia is moving towards comprehensive regulation of cryptocurrencies with the aim of bringing clarity and stability to the market since Russian companies are actively using Bitcoin. Four bills have been introduced in the State Duma, covering various aspects such as crypto mining, cross-border payments, taxation, and liability for illegal use. The bills are expected to be adopted by the end of the spring session, with consideration given to the opinions of market participants on tax rules.
However, decentralized cryptocurrencies like Bitcoin are yet to be fully regulated, and Russian authorities are intensifying their efforts to address this regulatory gap in the face of Western sanctions. Overall, Russia is striving to create a legal framework that balances innovation and security in the cryptocurrency market.
Also Read: Binance to leave Canada citing regulatory tensions.