- It has been announced that the region of Duma in Russia will be passing crypto laws in the next two weeks
- This is in line with a July 1 deadline set by Vladimir Putin
It seems crypto regulation in Russia is finally about to make some headway after much delay and back and forth. Months ago it was reported that Russian president Vladimir Putin had demanded that Russian regulatory bodies create definitive crypto laws by July 1, 2019. Then it seems like this had stalled when a Russian official stated that crypto regulations were no longer a priority for Russia as they have become less popular.
Now it has been reported on June 19 that the State Duma will be adopting a new bill on Digital Financial Assets (DFA) within the next two weeks. This will be a major move towards regulating the crypto industry within Russia and giving it legitimacy.
Russian lawmakers feeling the pressure
According to Alexei Moiseev, who is the Russian deputy finance minister, the State Duma is considering the DFA and most likely will adopt the bill in the second reading within the next two weeks.
He also revealed that the Duma has approved a separate legislation which will relate to initial coin offerings and which will be a part of the current law that relates to crowdfunding. As a result of this, two bills will be created that will relate to cryptocurrency- the DFA and the one on crowdfunding. While the crowdfunding law has already been approved the DFA is expected to be approved in whatever version is prepared for the second reading.
This also means that the country will be able to meet Vladimir Putin’s deadline of July 1, 2019, which were previously required for the state to enforce regulations with regard to the crypto industry.
The need for clarity
There had previously been the challenge of lack of definitions for certain crypto related terms such as cryptocurrency and this collided with terminology requirements from the financial action task force on money laundering.
The adoption of regulations such as this will go a long way in making sure that the crypto industry can operate within the bounds of Russian law and is formally recognized. It also sets the foundation for more progressive laws to be passed in the future that will aid the growth of the industry within Russia and beyond.