Russia releases the draft law on cryptocurrencies

Russian Ministry of Finance has published the draft Law on digital financial assets, which provides for the definition of the status of digital technologies, including cryptocurrencies.

On its official website, the ministry notes that the draft law has been developed on the basis of the mandatory status of the ruble as the only legal means of payment in Russia. “It should be noted that use of cryptocurrencies as the means of payment will not be provided for in the territory of Russia.”

The draft law also regulates the issues related to public raising of funds (including cryptocurrencies) through ICO, similar to the regulations on initial placement of securities.

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“This draft law contains a disagreement with the Bank of Russia regarding the possible exchange of cryptocurrency to ruble, foreign currency and/or other property. According to the Bank of Russia, such deals can be permitted only for tokens that are issued for raising funds,” the ministry has informed.

In this regard, the ministry remarks that deals with cryptocurrency are rather widespread and establishment of a statutory ban will create conditions for the use of cryptocurrency as a tool for serving illegal business, money laundering, and financing of terrorism.

The draft law suggests the definition of cryptocurrency as digital property and permits deals with cryptocurrencies in Russia only through those operators of exchange of digital financial assets, who comply with special requirements. These regulations are expected to reduce substantially the fraud risks and facilitate a transparent tax regime for cryptocurrency transactions.