March 29, 2024

Distance from Bitcoin: we explain why Russia does not want to introduce the term “cryptocurrency” into the legal field

In the new version of the draft law "On Digital Financial Assets" ("On DFAs"), legislators have changed the interpretationterm "digital asset", in fact, veiling the characteristics of the token under it.The latter, along with "cryptocurrency", is not directly mentioned in the document.

Also in the text there is a new concept“Digital currencies”, including foreign currencies, the issue and use of which will be prohibited in officially authorized systems. Indirectly, one can understand classic cryptocurrencies, but the vagueness of the wording is unlikely to add clarity to the already gray legislative field of the crypto industry in the Russian Federation.

ForkLog asked experts about whatrelated is the desire of lawmakers to get away from the specific generally accepted terminology of the cryptocurrency market and whether, as a result, the Russians will be allowed to conduct operations with bitcoin.

The topic of regulation of the crypto market obviously causes great inconvenience to the authorities, the managing partner believesEXANTE Alexei Kiriyenko.This, according to him, is indicated by the number of postponements of the consideration of the draft law "On DFAs".

«The bill looks crude, and the wording— cause confusion. For example, DFA — a very broad concept. There are already established terms in the world — utility and security tokens. Sooner or later everyone will come to these definitions, and there is no need to reinvent them»,— the expert argues.

The authorities can be driven by the desire to distance oneself as much as possible from the already issued cryptocurrencies and tokens, agrees Dmitry Zakharov, director of the Blockchain Lawyers continuing education program.

«Russia is far from resolving traditionalcryptocurrencies, such as Bitcoin, and tokens issued as a result of already completed ICO/IEO procedures. To avoid speculation on this topic, the legislator introduces new terminology»,— he suggests.

In the new version of the bill, the mostThe term «digital currency» is noteworthy. As the advisor to the IP/IT practice of Tomashevskaya & Partners, member of the Commission on Legal Support of the Digital Economy of the Moscow Branch of the Russian Bar Association Roman Yankovsky:

  • digital currency does not give any claim rights, including claim security rights, like stablecoins;
  • it is not approved by the Bank of Russia (otherwise it becomes a digital operating symbol);
  • digital currency is not the currency of another state.

«If these three criteria are met, then wewe receive prohibited digital currency. This, for example, would be considered Bitcoin. Security tokens and stablecoins are regarded by legislators as a digital financial asset, utility tokens — as a utilitarian digital right, Russian national «cryptocurrency» and conditional «Libra» from Russian banks — as digital operating signs»,— Yankovsky explained.

It is possible that the Russian government plans to create its own crypto-exchanges, like in China or the USA, which, however, should not violate the hegemony of the Central Bank, continues Alexei Kirienko.

«As a result, officials are between Scylla andCharybdis: on the one hand, they must put forward a bill that will not create the feeling of a total ban, and on the other — listen to the Central Bank, which defends its currency monopoly»,— he explained in a comment to ForkLog.

Given the general negative attitude towards cryptocurrencies by the Central Bank, the expert believes that legal trading in digital currencies is unlikely to become a reality in the near future.

Let us remind you that the bill «On DFA» alreadythe second year undergoes amendments in preparation for the second reading. The day before, the Chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, expressed hope that the bill could be adopted before the end of 2019.

However, a member of the Council forthe development of the digital economy under the Federation Council Nadezhda Surova. In her opinion, the lack of consensus between representatives of various blockchain companies postpones the adoption of the law for at least a year.