Russian Blockchain Association Proposes Amendments to Crypto Law

Russian Blockchain Association Proposes Amendments to Crypto Law

Russia’s Association of Crypto Industry and Blockchain has come up with amendments to the country’s long-awaited crypto law, which is currently under consideration.

Also read: How Russian Miners Face Domestic Cryptocurrency Mining

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Existing Draft Not Sufficient?

Russia’s Association of Crypto Industry and Blockchain claims the existing draft, which has already been passed in its first reading but could still be substantially revised before it becomes law, will fail to attract investment in the country’s tech industry as it is too restrictive.

According to the association, the existing draft should be significantly liberalized.

Specifically, the group says there is no need for a state-appointed operator that would control issuance and distribution of tokens. Token issuers and token buyers should have the right to interact directly as long as they observe applicable rules, the association has said.

Which way will Russia’s crypto legislation break? Toward leniency or harshness?

Another major issue the group insists has to be addressed is recognition of digital assets as a legal means of payment in the country. The current version of the draft never mentions that option, basically leaving crypto payments outside the law.

Coupled with an identification mechanism for owners of digital assets and a system for remote verification of crypto owners, the introduction of crypto payments for goods and services would not incur risks of fraud and other unhealthy activities.

As a further step towards crypto adoption, the association suggested digital assets be added to the country’s tax code and taxation on income and revenue in crypto be introduced.

The association also called for reinstating the definition of crypto mining, which was earlier excluded from the draft law, alongside the notion of cryptocurrencies.

Busting Ambiguity in the Nation

Since the crypto draft law was passed this May by the State Duma, the lower chamber of Russian parliament, senior state officials have been making ambiguous statements about blockchain and crypto, ranging from calling for taxing crypto mining to suggesting a stablecoin pegged to the national fiat currency, the ruble.

This ambiguity likely prompted the association to come up with its suggestions. At this point, there is no clarity on when the draft law could have its second reading.

The association said it will promote its amendments using various platforms, from the State Duma to the Federation Council, the upper house of Parliament, and the digitization council at the Russian Union of Industrialists and Entrepreneurs.

Whether they will be able to get any of their amendments included in the draft remains to be seen.

What’s your take? What crypto law or laws would you enact if you were in charge? Let us know in the comments section below. 

Images via Pixabay

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