Details of the cryptocurrency and mining law in Russia 2020

The two-year saga with the adoption of a law to regulate cryptocurrency in Russia is apparently approachinglogical conclusion. According to Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, the positions of different parties on this issue have been agreed, consensus among market participants has been reached, and if it were not for the coronavirus, the bill on Digital Assets would have gone through all the necessary stages in April.

But, despite the epidemic, Aksakov hopesthat before the end of the spring session the law will be adopted, especially since the government is interested in accelerating this process. The content of the document and the details of its preparation were revealed by the head of the relevant committee of the lower house of parliament in an interview below.

Anatoly Gennadievich, why so far the regulators of the Russian Federation have not been able to meet the deadlines for the adoption of legislative acts regarding cryptocurrencies?

We split up on whether to legalizecryptocurrencies within the framework of the Russian legal space and whether to enable market participants to use these tools as a means of payment. Now they have come to the conclusion that it is necessary to define these tools, but to prohibit their use as a means of payment.

Is it possible to say that the point of view of power structures influenced the final result?

The point of view of all parties was taken into account and, based onof this, the final position was formed. This discussion was attended not only by security officials, but also by the Skolkovo Fund, the chairman of the Ministry of Finance, the Central Bank, the Ministry of Economic Development, market participants represented by the Russian Union of Industrialists and Entrepreneurs, interested in selling cryptocurrency. The law will define digital financial assets, the procedure for their issue and circulation. It will also include the issue and circulation of digital assets secured by goods. That is, what was offered in the RSPP is spelled out in the law.

What path does Russia choose in comparison with the approach of our neighbors - Belarus, Ukraine, Uzbekistan?

Honestly, I was not very interested in their experience. For example, in Belarus there was a lot of noise, but there were no special revolutions.

How do you rate the finalized version?

I think it’s normal. We need to move forward, as soon as possible, to define digital assets and determine the order of their circulation, issue, collect legal practice, including judicial. And so you can see how it works; the absence of law impedes market development.

In your opinion, when can a law be adopted?

I wish they had accepted it a year ago, in my opinionLook, we were already ready for this then. This year, I hoped that we would accept it in April, but due to the coronavirus, all processes have slowed down, and the focus has shifted to priority measures to combat the epidemic. Because of this, I am afraid that it will not be possible to pass the law in the near future, although we are hastening those who agree on the decision. It is expected that by the end of the spring session we will finish considering the law on digital financial assets.

Is it possible to say that this will happen closer to summer?

It turns out like this.

Does the change of government with the appointment of technocrat Mishustin affect the acceleration of this process?

I got the feeling that the newthe government plans to quickly pass this law. Of course, more urgent problems have appeared now, but I got the impression that the process began to accelerate.

Will mining of cryptocurrencies be separated into a separate type of production activity?

Mining is not mentioned in this law, it is a kind ofan activity that produces some kind of value. Its regulation is advisable only from the point of view of taxation. This is a separate type of business - someone bakes pies, someone - digital assets, so mining should also be taxed.

What will be the taxation of mining companies and individual miners?

This is not my field; tax authorities are involved in this. Under current law, any business must be taxed, and for this it is not necessary to adopt a special law.

Will self-employed citizens be able to mine?

I think so, but this type of business is expensive.

In connection with the adoption of the new Constitution, which contains an amendment on the priority of Russian laws over international law, will the rules on combating money laundering (AML5) be applied?

The constitution has nothing to do with it. There are laws related to the implementation of the norms related to the fight against money laundering obtained by criminal means. They will also be spelled out in the new law.

A number of foreign exchanges Binance, Huobi, etc. operate in Russia, without forming a legal entity. Is there any regulation of their activities?

If they do not violate the laws, then no one will disturb them. With the adoption of the Law on Digital Assets, from my point of view, their activities should be regulated.

Rumors about the preparation of the Russian Federation's own digital money that can replace paper money are increasingly appearing on the market. Should we expect the appearance of the digital ruble?

The ruble, which is now used non-cash,it is actually a digital ruble. Electronic money is already in full use, but when we talk about digital financial assets, we mean assets that are issued and circulated on the blockchain. This is the main difference. I am sure that over time a crypto ruble will appear, the circulation of which will be served by the blockchain. But it will be a currency that will be controlled and regulated by the Central Bank.

According to your forecast, when will this take place?

This market has not yet formed, and the blockchain is notused as a tool for economic growth. Now it's just fun. We need to pass a law and evaluate whether it will give impetus to the use of blockchain and the circulation of goods. At least the RUIE sees great prospects in this.

How do you generally evaluate the prepared bill?

I consider it quite thoughtful, balanced. RSPP supports it, so we can say that it suits the market. And, as you know, the main consumer of this law is the market.

Given the announced deadlines, lawmakersreally aimed at the speedy adoption of the cryptocurrency law. Obviously, this way was chosen in its own way, and various departments of the country and even representatives of the crypto industry participated in the discussion of the document.

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