Russia is moving quickly on its plan to introduce cryptocurrency regulations. Most likely due to President Putin’s order that regulations be in place by June, the country’s parliament, the Duma, has adopted a bill, On Digital Financial Assets, on its second reading. That bill is designed to create national legislation for the cryptocurrency industry.
The Russian Duma has agreed to introduce amendments to the country’s Civil Code regarding digital rights. This will be the first step in creating the regulatory framework for a digital economy and the bill was previously approved by the Duma last May.
The chairman of the Duma, Vyachelsav Volodin, has emphasized that the amendments are designed to correct deficiencies in current legislative language relating to the concept of digital rights. He adds, “After the adoption of the law, citizens and legal entities will receive additional guarantees, allowing them to participate more actively in the development of the economy of the future.”
After the Duma approved the bill last May, it was sent back to be considered by parliamentary members, including by one of the individuals who helped draft the bill. That move came as a number of changes needed to be made to the bill, including terminology and definitions related to crypto and blockchains.
Volodin states of the bill, “The digital rights bill forms the basis for the development of the digital economy. This is a new area for our rights, because it is important for us to consolidate the basic concepts.” The politician adds, “With the adoption of this law, the work on legislative regulation of the development of the digital economy does not end. In the spring session, we will ensure the adoption of a whole block of draft laws on this issue.”
The term “digital rights,” under the bill, is defined as “obligations and other rights, the content and conditions for the implementation of which are determined in accordance with the rules of the information system that meets the statutory criteria.” It further explains that the “implementation, disposal, including transfer, pledge, encumbrance of a digital right by other means or restriction of disposal of digital law are possible only in the information system without recourse to a third party.”
Russia is now only a few short months away from having crypto regulations in place, if the government can adhere to Putin’s order. Many believe that the push for legislation is a prelude to something even bigger, but no one is yet sure what they may be.