Russia Decided to Postpone Issuing Major Cryptocurrency Law

Russia Decided to Postpone Issuing Major Cryptocurrency Law

Russia has been planning to release a new cryptocurrency law for some time now. Anatoly Aksakov, Russian State Duma Committee’s chairman of Financial Markets, declared that the finalizing of the bill on Digital Financial Assets. However, it won’t be adopted until the end of spring 2020 due to the coronavirus pandemic.

Russian authorities have been arguing about cryptocurrency regulations since January 2018. According to Aksakov, previous delays in the bill’s adoption were caused by disagreement among local authorities about the new asset type.

Anatoly Aksakov is also chairman of the National Banking Council at Russia’s central bank. He noted that while the State Duma advocated some crypto initiatives, the central bank opposed the legalization of crypto.

Even so, the reason for the latest delay is the coronavirus outbreak in Russia. The country declared that it’s currently a priority to fight the virus. Thus all legislative processes have slowed down for now.

What is the new bill about?

Russia’s cryptocurrency law reportedly won’t hinder the operation of local crypto exchanges. However, it will provide a definition of cryptocurrencies and prohibit the use of crypto as payment.

Furthermore, the law will include the circulation and issuance of digital assets, according to some officials. However, earlier in March, a legal executive at Russia’s central bank stated that the bill would ban the issuance and circulation of cryptocurrencies.

Aksakov highlighted that the new law wouldn’t hinder the operation of cryptocurrency exchanges if they won’t be violating it. The official also stated that the bill “On Digital Financial Assets” wouldn’t include regulations about crypto mining.

However, Aksakov argues that profits from crypto mining should be taxed, as it is a type of business that produces value.

As it is, Aksakov’s latest remarks about the new delay in adopting Russia’s upcoming cryptocurrency law comes along with the biggest one-day rise in coronavirus cases in Russia for the sixth day in a row. Moscow’s authorities have already ordered citizens to self-isolate, and the government is considering the nationwide lockdown.

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