As the presence of blockchain technology and cryptocurrencies has increased, so has the rate of adoption across countries. Some regions have wholeheartedly accepted crypto while others are still on the fence about its use in mainstream life.
Russia has recently taken a one-eighty decision on virtual assets, claiming that they will not be accepted as a form of payment in the country. With this in mind, Russia has completed work on the Digital Financial Assets Act, which is expected to be adopted by the end of the year.
Anatoly Aksakov, the head of the Duma committee on the financial market recently took to the stage to inform citizens that the legal framework for cryptocurrencies was ready to be launched. Officials in Russia’s financial space said that cryptocurrencies need to be regulated as there were many problems associated with it. The latest document created by the Russian government will also address how users need to proceed with cryptocurrency trading.
Russia added that the adoption of the framework will be delayed because of the current spread of the coronavirus. The country was one of several that closed its borders from foreign nationals after a massive spike in patients. Kremlin officials decided to take up the cryptocurrency issue at the moment so that a later calendar date could be set.
“We came to the conclusion that it is necessary to define these tools, but to prohibit their use as a means of payment. The law will define digital financial assets, the procedure for their issue and circulation. It will also include the issue and circulation of digital assets secured by goods.”
The state official also revealed that cryptocurrency mining was not mentioned in the bill, but they will be taxed. According to Aksakov, mining needed to be taxed because it was an industry that produces value. The cryptocurrency industry was kept under such a watchful eye because of the frauds and scams associated with it. This was a sentiment shared by Aksakiv as well who pointed out reports that claimed the number of crimes in the field has only increased year on year.
Cryptocurrency enthusiasts had some reason to rejoice as Aksakov suggested a crypto rouble might be in the works. If such a blockchain-based asset is launched, it will be controlled by the central bank of Russia. The complete ban on cryptocurrency adoption was put forth by the Central bank but was later refuted by the State Dumas. Just recently, the Rusian Ministry of Economic Development submitted a bill to the State Duma to create “regulatory sandboxes”.
Russia had initially stepped into the cryptocurrency game when a document titled “On Digital Financial Assets” was submitted to the State Dumas. President Vladimir Putin later instructed his cabinet ministers to introduce cryptocurrency regulations, which was postponed multiple times. Now that the spring date has been set, Russia plans to test crypto and blockchain in sectors such as medicine, transport, trade etc.