Latest steps to regulate the status of coins
The President of the Russian Federation instructed the Central Bank, together with the Government, to complete amendments to the legislation by mid-2020. The new rules should clearly define the terms “ICO”, “token”, “cryptocurrency” and “smart contract”. The Ministry of Finance needs to indicate that in Russia the ruble is the only official means of payment.
Preparation for the bill took a lot of time and included dozens of examinations and approvals. In September 2020, the State Duma announced a competition for an expert assessment of the cryptocurrency market and conducting Blockchain research, but this did not make the adoption of the bill by the Ministry of Finance any less controversial.
Statement by the representative of the Ministry of Finance
Deputy Minister for Finance, Alexey Moiseev, made a statement regarding cryptocurrencies in December 2017, which shook up the community. We were talking about administrative fines for mining and even criminal liability for the authors of new cryptocurrencies.
Although the project has not yet outlawed mining, the reaction of interested people was painful. Since then, miners have had time to calm down, and the majority decided to stick to the principle: “what is not prohibited by the Ministry of Finance is permitted.”
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Bill of the Russian Ministry of Finance
A little later, in January 2020, a bill appeared, put forward by the Ministry of Finance and directly affecting the ban on cryptocurrency. The department paid a lot of attention to regulating the sphere - the release of crypto-assets, trade, and storage.
The bill views cryptocurrency as a type of digital asset created by encryption, that is, property that exists only in virtual space.
Key provisions from the Ministry of Finance of the Russian Federation:
- Mining is entrepreneurship.
- Smart contracts are regulated in exactly the same way as regular contracts, with the same rights and obligations of the parties.
- Only legal entities can carry out transactions for the exchange of digital assets.
- Identification of the wallet used in the process of exchange transactions will become mandatory.
- Tokens issued during the ICO process were called a digital financial asset to attract investors to the project. Not only legal entities, but also individuals will be able to buy tokens, but the purchase amount will be limited to RUB 50,000.
Community representatives called the project on cryptocurrencies from the Ministry of Finance scandalous.
The Russian Ministry of Finance has published a draft law on cryptocurrency and mining
The Ministry of Finance of the Russian Federation has published a bill on the regulation of digital assets, which, among other things, defines cryptocurrencies, including Bitcoin, tokens, mining and ICOs.
The document refers to cryptocurrencies and tokens as “digital financial assets”:
“A digital financial asset is property in electronic form created using encryption (cryptographic) means. Ownership rights to this property are certified by making digital entries in the digital transaction register. Digital financial assets include cryptocurrency and token.”
Moreover, these assets “are not legal tender on the territory of the Russian Federation.”
According to the bill, cryptocurrency mining is defined as a business activity. Cryptocurrencies and tokens are considered as types of digital financial assets, and smart contracts in the form of an agreement in electronic form.
“Mining is a business activity aimed at creating cryptocurrency and/or validating it in order to receive a reward in the form of cryptocurrency.”
The new rules require that operators of cryptocurrency exchanges must be registered as legal entities and comply with the federal laws “On the Securities Market” and “On Organized Trading.”
In addition, ICO organizers must disclose information about the beneficiaries, the location of the issuer, information about the validator, about the persons carrying out depository activities, the rights of token holders and the procedure for their implementation, the price of the token and the start date of concluding agreements on the acquisition of tokens.
Tokens can be issued by legal entities or individual entrepreneurs to attract financing. A token of a certain type can only have one issuer. Unqualified investors can purchase tokens within one issue for an amount of no more than 50 thousand rubles.
The exchange of cryptocurrencies and tokens is allowed for other cryptocurrencies, rubles and foreign currencies only through exchanges that are registered in Russia. There are no tax provisions in the bill yet.
Let us remind you that according to the order of Russian President Vladimir Putin, legislative regulation of cryptocurrencies, ICOs and mining in Russia must be implemented before July 18, 2020.
In December, the Russian Association of Cryptocurrency and Blockchain RACIB developed a bill on regulating crowdfunding, which, in essence, is an attempt to regulate ICOs.
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The latest news on the cryptocurrency market and mining:
Cloud mining of Bitcoin in 2020 - how to choose a reliable and profitable service?
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The following two tabs change content below.
- Author of the material
- Latest news from the world of cryptocurrencies
Mining-Cryptocurrency.ru
The material was prepared by the editors of the website “Mining Cryptocurrency”, consisting of: Editor-in-Chief - Anton Sizov, Journalists - Igor Losev, Vitaly Voronov, Dmitry Markov, Elena Karpina. We provide the most up-to-date information about the cryptocurrency market, mining and blockchain technology.
News Mining-Cryptocurrency.ru (go to all news feed)
- Cloud mining of Bitcoin in 2020 - how to choose a reliable and profitable service? — 08/14/2020
- Kraken Report: Bitcoin is on the verge of “great adoption”, BTC price will rise by 50-200% - 08/14/2020
- Bitcoin Enters Mega Bullish Phase, Over 93% of BTC Addresses Show Profit - 08/14/2020
- Anatoly Aksakov commented on the adopted law on cryptocurrency in Russia - 08/14/2020
- Platform for centralized management of the cryptocurrency mining process CoinFly - 08/14/2020
Cryptocurrency in RussiaRegulation and legislation
March bill
Next, the initiative from the Ministry of Finance passed to Krashennikov and Volodin, the chairmen of two large departments. The initiative implied the introduction of the concepts of “digital law” and “digital money” into the Civil Code of the Russian Federation. The ultimate goal is to protect investors from the loss of financial assets in the event of a cryptocurrency network collapse.
Legal regulation can really bring order to the digital economy. Now there is a lot of fraud in this area: new blockchain platforms are opening, many of which are closed, leaving investors with nothing.
The document provides the following definition of a digital right (DR):
“Digital law is the right to objects of civil law, confirmed by a set of electronic data (a certain code or designation). The person with access to this code is considered the owner of the CPU."
The use of cryptocurrencies as a means of payment in some cases is stipulated, but electronic money will not yet become a mandatory means of payment.
In May 2020, a legal forum was held in St. Petersburg, at which Dmitry Medvedev stated that it was necessary to include in the Civil Code the basic terms of “digital money” and “digital law” instead of the more stringent and limited “token” and “cryptocurrency”. The latter are not as suitable for legal documents.
Russian Justice Minister Alexander Konovalov expressed the opinion that cryptographic currency should not be given the status of electronic money: it would be more correct to consider coins as personal property. If the cryptocurrency market develops further, additional regulatory measures will be required.
The Ministry of Finance proposes to introduce a ban on cryptocurrency mining for individuals
The head of the department for financial policy of the Ministry of Finance, Yana Pureskina, during her speech at the first meeting of the expert council on financial technologies in the State Duma, said that her department recommends introducing mandatory registration of cryptocurrency miners and licensing of cryptocurrency exchanges. TASS writes about this.
“In order to combat money laundering and the financing of terrorism, it is important to establish an obligation to register digital currency issuers, the so-called miners,” she said.
In addition, in order to protect market participants, the Ministry of Finance proposes to allow only legal entities and individual entrepreneurs to engage in mining.
Pureskina also reported that the department supports the official position of the Central Bank on the issue of legalization of cryptocurrencies.
“With regard to the use of cryptocurrency as a means of payment, we are quite restrained - rather, we are in the position of prohibition,” she said.
She also emphasized the importance of identifying market participants in order to combat money laundering and the use of cryptocurrencies with criminal intent.
Rate this publication
The latest news on the cryptocurrency market and mining:
Cloud mining of Bitcoin in 2020 - how to choose a reliable and profitable service?
Kraken Report: Bitcoin on the verge of “great adoption”, BTC price will rise by 50-200%
Bitcoin enters mega bull phase with over 93% of BTC addresses showing profits
Anatoly Aksakov commented on the adopted law on cryptocurrency in Russia
Platform for centralized management of the cryptocurrency mining process CoinFly
The following two tabs change content below.
- Author of the material
- Latest news from the world of cryptocurrencies
Mining-Cryptocurrency.ru
The material was prepared by the editors of the website “Mining Cryptocurrency”, consisting of: Editor-in-Chief - Anton Sizov, Journalists - Igor Losev, Vitaly Voronov, Dmitry Markov, Elena Karpina. We provide the most up-to-date information about the cryptocurrency market, mining and blockchain technology.
News Mining-Cryptocurrency.ru (go to all news feed)
- Cloud mining of Bitcoin in 2020 - how to choose a reliable and profitable service? — 08/14/2020
- Kraken Report: Bitcoin is on the verge of “great adoption”, BTC price will rise by 50-200% - 08/14/2020
- Bitcoin Enters Mega Bullish Phase, Over 93% of BTC Addresses Show Profit - 08/14/2020
- Anatoly Aksakov commented on the adopted law on cryptocurrency in Russia - 08/14/2020
- Platform for centralized management of the cryptocurrency mining process CoinFly - 08/14/2020
MiningRegulation and legislation
Unifying bill on cryptocurrencies
Closer to the summer of 2020, a meeting was held at the Competence Center, which specializes in the legal regulation of the cryptocurrency market and the virtual economy as a whole. The main subject of discussion was the turnover of Bitcoins and other cryptocurrencies. All developments related to the topic that appeared before were collected.
The final document regulates the rights to digital property. Both individuals (IP) and legal entities can engage in the issue, acquisition and sale of monetary rights. This also applies to foreign citizens. Specific requirements are established by the Bank of Russia.
At the end of May, deputies in the State Duma adopted bills according to which cryptocurrencies are not prohibited in Russia, but issues related to digital assets, currencies, investments, and crowdfunding are addressed. The mining process is also partially affected.
According to the requirements of the Russian Ministry of Finance, digital assets are regarded not as a means of payment, but as property. It was proposed to make amendments to the law - to include the development of cryptocurrency exchanges, where electronic coins would be exchanged for real money.
Financial specialist Anatoly Aksakov believes that miners need to be included in the Federal Tax Service register so that crypto miners fully pay taxes for their activities. It is proposed to introduce a division into small home mining (which is exempt from taxes for the first 2 years) and industrial.
Cryptocurrency as a subject of law
Concepts related to the financial side of the implementation of blockchain technology (cryptocurrency, token, mining, etc.) will receive legally significant definitions in Russia. Specific terminology is spelled out in the draft law “On Digital Financial Assets” prepared by the Ministry of Finance.
These assets, which directly include cryptocurrency and tokens, are described in the document as property in electronic form created using encryption (cryptographic) means. Ownership rights to them are verified by making entries in the digital transaction register. “Digital financial assets are not legal means of payment on the territory of the Russian Federation,” the bill emphasizes.
According to the Ministry of Finance, cryptocurrency and tokens in our country can only be legally exchanged for money or other digital assets. Such an exchange without restrictions will be able to be carried out only by specialized legal entities that comply with the federal laws “On the Securities Market” and “On Organized Trading”.
The Ministry of Finance gave legal definitions of cryptocurrency, tokens and mining
Individuals (unqualified investors) will independently be able to purchase tokens worth no more than 50 thousand rubles within one issue. They will be allowed to do this only by crediting tokens to a special account linked to the electronic wallet of a legal operator (the aforementioned specialized legal entity).
In general, the upcoming law is intended to regulate relations arising during the creation, release, storage and circulation of digital financial assets, as well as the exercise of rights and fulfillment of obligations under smart contracts.
