Will Russia’s Crypto Law Hinder or Encourage Crypto Operation?

Recently, the adoption of Russia’s major crypto law known as “On Digital Financial Assets” got finalized. Nevertheless, according to reports, Anatoly Askakov, the chairman of the Russian State Duma Committee on financial markets, said that the bill wouldn’t get adopted before the end of spring of 2020 due to the Covid-19 pandemic.

Askakov claimed that the previous delays in the bill’s adoption occurred because of the disagreement on the new asset type between local authorities. He highlighted that the central bank opposed the legalization of crypto while the State Duma was also advocating some crypto initiatives. According to Askakov, the adoption got postponed again due to Covid-19 because the country shifted attention to priority actions against the pandemic.

What the Upcoming Crypto Law Entails

The reports reveal that the upcoming crypto law will define cryptocurrencies and ban crypto as a payment mode. Askakov further added that the law will include the issuance and circulation of cryptocurrencies. Nevertheless, this is contrary to what got reported concerning the matter earlier. The reports earlier said that a legal executive at the Russian central bank stated that the law would prohibit the issuance and circulation of cryptocurrencies.

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Askakov also highlighted that the upcoming law wouldn’t hinder crypto exchanges’ operation if they don’t violate it. Additionally, he said that the bill would not include regulations regarding crypto mining. However, he expressed confidence that profits made from crypto mining should get taxed, as crypto mining is a type of business that gives value.

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