In the period until June 2018, the Ministry of Finance of Russia together with the Russian Central Bank had to develop a procedure for the regulation of cryptocurrencies and holding of ICO, and to determine the status of such concepts as «technology of distributed registries», «digital credit», «digital mortgage», «cryptocurrency», «token» and «smart contract».
On 22 may, the draft laws «On digital of financial assets (CFA)», «ON amendments in the first, second and fourth Civil code (CC) of the Russian Federation», «About alternative ways of attracting investment (crowdfunding)» was approved in the first reading deputies of the state Duma of the Russian Federation.
It is worth noting that the bill «ABOUT CFA» not reglamentary cryptocurrency transactions and provides their legalization, and the focus of the report focuses on operations on tokens are described using the term «digital rights». In prepared for the second reading of the draft also lacks a definition of mining and turnover of existing cryptocurrencies. In November the Council under the President of Russian Federation for codification and improvement of civil legislation because of the numerous shortcomings of the bill invited him to return to the stage of first reading. Another consideration of package of bills rescheduled for the spring of 2019.
How well drafted laws and what the consequences for the economy of the Russian Federation may have delay acceptance of triptoreline in the country? These questions are specifically for ForkLog said head of information support of the projects of the Russian Association of kryptonyte and blockchain (RAKIB) Nikolay Nemchinov, head of the interagency working group of the state Duma on regulating the risks of cryptocurrency circulation Elina Sidorenko, as well as teachers programs of additional education Blockchain Lawyers: partner of the law firm “Sartin, Jankowski and partners” Roman Jankowski and lawyer of the company “Lamczyk, Krupsky and Partners,” Veronica wolf.
ForkLog: whether to call the document “ABOUT CFA” full?
Nikolay Nemchinov: estimated RAKIB, the version of the bill adopted in first reading by the state Duma of the Russian Federation, precludes the possibility of effective development of kryptonyte in our country. In our opinion, the law should be the definition established in the market and used in the international business relations of the terms «cryptocurrency» and «mining». RAKIB considers it appropriate to accept cryptocurrency payment.
The law must take into account the peculiarities of taxation of profits arising from transactions with cryptocurrency/tokens. When carrying out trading operations RAKIB offers to carry out the procedure of taxation at the point of transfer cryptocurrency to Fiat. Also the law should provide a description of procedures in KYC/AML. The law should not limit the transactions directly between the owners of the tokens and cryptocurrencies the creation of a specialized operator.
Roman Yankovsky: the Question of “usefulness” that must describe the legislation on cryptocurrencies. On the one hand, there is the fight against laundering of criminal money. On the other – to protect inexperienced investors and the fight against fraud on ICO. These risks the government considers significant enough and tries to reduce. But the status of cryptocurrencies themselves is no serious risk does not beget, therefore the hassle associated with their settlement, the state is not necessary. In General, it is, in my view, sensible and appropriate approach, the appropriate political and legal principles: first, to resolve the issues, then of necessity the rest.
ForkLog: On what date assigned following consideration of this and other bills?
Nikolay Nemchinov: the state Duma, according to official current schedule, plans to consider the bills until the end of January 2019. According to our information laws will be considered until the end of the spring session.
ForkLog: will the package all three of bill (THE“CFA”, “ON amendments in the civil code of the Russian Federation”, “crowdfunding”), or something will be removed or amended?
Nikolay Nemchinov: At the moment MPs are planning to consider all three bills. Given the fragmented nature of the bills, with the exception of a list of at least one of the draft laws is almost obessmyslivaet all the work to draft legislation aimed at regulating the entire market as a whole, not its individual segments.
Roman Jankowski: most Likely, the bills one way or another will be unified, first of all the draft laws “On digital of financial assets” and “On amendments to the RF civil code”. However, the changes to the Civil code in any case have to make a separate law is right prescribed in clause 2.1 of article 3 of the civil code. So laws will have some.
ForkLog: whether the Impact of the bearish sentiment of the stock market at the speed of legislation?
Nikolay Nemchinov: No, the two are not related to each other in the process. The adjustment of the exchange rate of the cryptocurrency at the end of 2018, largely led to the reduction of risks for investors. Have the opportunity to plan their investments not only on the speculative horizon, but the strategic perspective. In the market there are investors with long-term plans, they are interested in making the laws.
Veronica wolf: I Think that we should not make decisions on the legal regulation of cryptocurrency with an eye to high market volatility. In addition to the cryptocurrencies, there are also areas of smart contracts, ICO, which also require legal certainty. Part of the package of bills addresses these questions. However, the longer the bills remain under consideration, the less stable situation for all the players of the stock market. In the end, it may seem that the legislator has lost interest in this area. And that in the future will negatively affect the mood of the entire crypto community.
ForkLog: As the postponement of the adoption of legislation impact on business, investment, Russian traders?
Nikolay Nemchinov: Russian President instructed the Government and Central Bank to ensure payment for legislative changes aimed at regulating the cryptocurrency industry and digital technologies in the period up to 1 June 2018. Until now, however, laws are not adopted. Moreover, in case of approval of the bills as proposed, the adopted laws will not help to attract investment capital in Russian startups, small and medium business. The adoption of laws in this form will lead to the migration of the Russian participants of the market in other, more loyal, in terms of legislation, jurisdiction.
During the time elapsed since the orders of the President, the Russian economy, according to expert estimates, RAKIB, lost about $2 billion Just because of the outflow of Russian miners abroad, including payments to foreign intermediaries (commissions), the Russian budget loses over $300 million a year.
Veronica wolf: Russia is one of the promising markets for cryptobytes. But to attract investments and investors to our territory the important political and legal stability in cryptosphere. You must remember that if the delay in the legislative initiative, capital may flee to another jurisdiction with more lenient rules.
ForkLog: Why did the state Duma of the Russian Federation faced the problem in the issue of cryptocephalinae?
Elina Sidorenko: the Only reason is the lack of a unified vision of this issue at the state level. Each Ministry is trying to solve their problems, and they are not the same. The Central Bank provides the limitation of the cryptocurrency in view of the impossibility of monitoring, the Federal service for financial monitoring, in principle, sees the possibility of a turn provided user identification, and the market is interested in to develop it. And these three completely different directions lead to the fact that developed a different concept — they are already more than seven — and now they are considered by the authorities. Until we come to the solution of fundamental questions: what is cryptocurrency how to control it and are we ready to control all the crypto threads — we from the point will not move.
ForkLog: In September, the Center TSEFI MGIMO, VNESHECONOMBANK and Russian Union of Industrialists and entrepreneurs (RSPP) prepared an alternative draft law “On digital of financial assets”, which, in particular, implies division of the CFA into digital securities, cryptocurrency and digital signs. How are things going with his review?
Elina Sidorenko: He is considered by several expert councils of the RF state Duma and is seen as an alternative, the bill “ABOUT CFA”. In addition, the head of RSPP Alexander Shokhin sent a letter to Prime Minister Dmitry Medvedev, after which a document was also submitted to the government.
ForkLog: In your opinion, what role in this legislative uncertainty, he can play?
Elina Sidorenko: Our bill is kind of a middle ground between diametrically opposed positions. With one hand he gives a definition of cryptocurrency and the main participants, on the other hand reasonably determines that the user is authenticated. And we hope that in the days of the crossroads of this bill will be able to take its rightful place within the existing discussions.
But in any case there is already the FATF recommendations, according to which every country for 2019 should introduce legislation governing cryptocurrency circulation, and this circulation should be close to turnover of money or payment instruments. That is why in October 2018, the FATF issued a statement that, in the absence of specific legislation into account should be taken of the traditional recommendations of the FATF regarding the control of financial flows. This is a very important result and it shows that bitcoin is getting closer to the money, and if regulated, is it is extremely.