Putin sets Deadline for Russia to Adopt Crypto Legislation

Putin sets July 2018 Deadline for Russia to Adopt Legislation over Cryptocurrency 

It seems that Russia is now shifting its attitude towards cryptocurrencies. Russian authorities are finally planning to work on new legislation that would apply to cryptocurrency markets by summer 2018, making it effectively legal.

According to an official publication on March 1, Vladimir Putin, the Russian President set July 1 as a deadline for relevant legislation on cryptocurrency to be adopted.

As revealed in a report by the Russian parliament’s official publication on March 1, Russian president Vladimir Putin has set a deadline on July 1 for relevant cryptocurrency regulation to be adopted in the country.

Anatoly Aksakov, the chairman of the State Duma Committee for the Financial Market, stated that the digital currency market is associated with certain risks, and therefore state intervention is needed. And as so, specific regulation for this market is utterly necessary.

The Russian Central Bank and the Ministry of Finance prepared a bill on alternative methods of attracting investment (crowdfunding) – On digital financial assets. The documents establishes the legal basis for the primary launch of tokens (ICO) in Russia, regulating the turnover of cryptographic currency, the implementation of mining and ICOs. Although key positions on the main regulation points have already been taken, there are still a few fundamental contradictions between the Bank of Russia and the Ministry of Finance on cryptographic foreign exchange transactions.

Aksakov stated:

“The Central Bank is against the legalization of this type of digital currency because, in this case, citizens can start to actively invest in encryption, not taking into account possible risks.”

Despite the contradictions, President Vladimir Putin instructed that a relevant committee would be appointed to design a set of laws for cryptocurrency that should be adopted by July 1, 2018.

The Official Report

The official report recommended that the two authorities settle on the principle administrative procedures pertaining to digital currency. However, there is still one noteworthy logical inconsistency with regards to cryptographic money trades working in the nation. Basically, the national bank isn’t too happy about retail brokers and financial investors accepting or taking part in cryptocurrency trading.

The official report particularly indicates that there are two draft laws focused on blockchain innovation that have been created up to this point. Russia’s Ministry of Finance has put the focus on lawful rules for the issuance of starting coin offerings (ICOs) while the nation’s national bank has arranged a different draft law on crowdfunding.

Regulation over cryptocurrency mining

According to Alexei Mostovshchikov, chairman of the Expert Council of the Youth Parliament under the Russian Duma, a different bill that refers to cryptocurrency mining will also be submitted to the Russian Parliament this month. This bill intends to set up administration rules encompassing cryptocurrency mining. Individual investors will be permitted to enter mining pools set up by lawfully perceived entities and take part in an activity that should not be considered as industrial mining. Companies wanting to engage in industrial mining activities will have different rules.

Both bills are to be submitted to the chamber this month. After that, the subject will be discussed, but by the looks of it, it is almost certain that the country will be legalizing cryptocurrencies this summer.