Cryptocurrencies are only partially regulated by the law “On Digital Financial Assets,” but Russia is now adopting legislation that will establish comprehensive rules for the trading of bitcoin and other cryptocurrencies. The Prosecutor General’s Office of Russia has also joined the effort to have the term “cryptocurrency” incorporated into legal texts.
“We have developed amendments to a number of regulatory legal acts so that cryptocurrencies in illegal circulation are not only recognized as а subject of a crime but there’s also a legal possibility of their arrest and confiscation,” Igor Krasnov, deputy prosecutor general of Russia, told RIA Novosti.
Other legislative changes are being discussed by Russian lawmakers to establish a proper legal framework for cryptocurrencies. There are a number of activities associated with digital coins that are not covered by the current law, including taxation, mining, and payments.
Cryptocurrency mining has been called for to be recognized as an entrepreneurial activity and taxed accordingly by officials in Moscow. Despite its opposition to legalizing digital currencies for payment purposes, the Central Bank of Russia (CBR) continues to act against this. These are illegal “money surrogates” in Russia, according to the regulator.
The monetary authority is currently developing a digital version of the national fiat, insisting that this is exactly what is needed by the Russians. A digital ruble is intended to provide a low-cost, reliable payment option that also protects personal data, Elvira Nabiullina, the head of the CBR, promised in November. Trials for the CBDC will begin at the Bank of Russia in January 2022.
Additionally, the Russian prosecutor general proposed that cryptocurrency and other virtual assets be recognized as property in the country’s Criminal Code last month. The legal definition will be used in court proceedings, according to Igor Krasnov in the State Duma, the lower house of parliament.
In addition, Krasnov revealed that his department has already drafted a bill that would regulate the issue and expressed hopes that lawmakers would support it. Bitcoin and other digital currencies have been recognized as property under several other Russian laws, such as the laws on bankruptcy and enforcement proceedings, the anti-money laundering legislation, and the anti-corruption legislation.