Russia: Gov’t Demands Major Revisions To Proposed Cryptocurrency Laws

Russia

The Russian government has demanded lawmakers make several alterations to the country’s forthcoming cryptocurrency regulation before it becomes law in July.


Tax, Foreign Investment In Spotlight

A summary of comments made after the first reading of bill 419059-7, ‘On Digital Financial Assets,’ shows the Kremlin eager to enshrine foreign investor access to future Russian token releases, as well as produce clear tax obligations for cryptocurrency holdings from the outset.

“Given that tax obligations for digital financial assets and associated investments are not included in the law…, the government views as essential the need to make corresponding changes… regarding taxation and collection,” the summary reads.

On foreign access to tokens, the government said it was “desirable” in its view to make hard-and-fast rules as an appropriate setup would “increase the attractiveness of investment” in projects launched on the Russian market.

Making Sense Of The Noise

Appearing generally supportive of the law’s content, the substantial revision requests, which pertain to a range of issues beyond tax and foreign investment, are the latest hurdle in Russia’s long road to cryptocurrency regulation.

The ‘gray area’ status of much of the technology has given rise to a sea of conflicting opinions on the legality of Bitcoin and other assets, with various pseudo-official schemes being put forward with varying degrees of believability.

Last year, suggestions even appeared from politicians trying to ban access to crypto altogether for regular Russians, something which president Vladimir Putin himself later indicated was not what he wanted.

Meanwhile, it remains to be seen what specific effects the new package of laws will have on the country’s fledgling consumer crypto market.

Currently, a host of exchanger resources offering direct transfers to bank cards and electronic wallets for Bitcoin and altcoins are in operation, but tax obligations for residents who use them remain at best open to interpretation.

Continuing that narrative, Sberbank president Herman Gref said this week that he does not consider cryptocurrency to be a “life-changing technology” for Russians.

What do you think about Russia’s cryptocurrency regulation plans? Let us know in the comments section below!


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