Russia Legalizes Cryptocurrencies Terming Them Property

Russia Legalizes Cryptocurrencies Terming Them Property

On Wednesday, the Russian State Duma passed a bill legalizing cryptocurrency in the country. It also defines them properly.

According to TASS local news agency, the legislative body passed the draft bill at the third reading.

Any digital currency in Russia will be now recognized as a collection of electronic data that can be used to make payments or as an investment tool. These currencies are not controlled by any central authority and are maintained and managed by the nodes and operators of the blockchain system.

It was also stated that the bill clarified that the digital currencies are a type property and cannot be used for payment.

After years of confusion, the Russian government clarified its position on crypto. The previous bill was a ban on all cryptocurrency trading services within the country. However, it faced opposition from existing Russian crypto businesses.

The crypto industry may not change

Although the new laws will be in effect from January 1, 2021 to regulate cryptocurrency, experts say that it will not affect the country’s existing crypto industry. The bill is merely a legal definition of digital currencies.

Anatoly Aksakov (a member of the State Duma who sponsored the bill) explained to one local news agency that the new regulations will permit local companies to issue stablecoins.

The bill stated that the Russian central bank would oversee the issuance of any new digital currency in the country and further decide on its features. The framework for selling digital currencies to qualified investors will be decided by the monetary regulator.