Russian legislators remove "cryptocurrency" from draft law, Russians unperturbed

24 Sep, 2018
by Richard Allen
News
Russian legislators remove cryptocurrency from draft law, Russians unperturbed

Russia’s cryptocurrency regulation is around the corner. Reports indicate that the word “cryptocurrency” has been removed from legal texts. Despite this, cryptocurrencies aren’t going anywhere, CoinWire reports.

The much-anticipated draft law “On Digital Financial Assets” is predicted to presented for public discussion in October.  The term “cryptocurrency”, however, has become a thorn in the side of Russian legislators who have been busy creating legal definitions for several new terms related to the fintech industry. The issues stem from a conflict with existing laws that declare the ruble as the only legal tender and bans all money alternatives.

Local news outlet Izvestia has reported that legislators have done away with the term. Additionally, the site also reports that they've already glanced at the draft’s latest version.

The legislation also addresses cryptocurrency mining. Originally, the legislation defined crypto mining as “creating cryptocurrency.” The report now allegedly indicates that the definition has been changed to the issuance of tokens for the purpose of attracting capital investments. As such, tokens will now correspond to property rights and ownership stakes.

The absence of a legal definition for cryptocurrencies is unlikely to have any impact on the trade of digital assets in the country. Despite the legal ambiguity surrounding the industry, financial institutions continue to provide services to cryptocurrency exchanges.

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