Russian Parliament has jointly formed a Working Group whose sole purpose would be to recommend provisions relating to Russian crypto regulations. The members of the Working Group are expected to give their recommendations with regard to crypto regulatory standards which need clarification.
The Working Group will be suggesting Russian Parliament whether mining can be legalized and how digital currencies can be brought under the tax regime.
Usually, investors put their money at stake when they are sure that their investments will be safeguarded. However, in the case of crypto mining, this very aspect of “safeguard” is completely missing in the global system. Such is the situation in Russia as well.
Although Russia has been housing a large population of crypto miners, yet mining is not a “legal activity” at all nor is declared “illegal”. This means that miners are on their own if they are exposed to any sort of commercial risks. Similarly, Russia is one of the biggest crypto trading countries, yet digital currency trading is unregulated as well.
In recent times, however, the Russian Government has decided to regulate both, crypto mining and its trading. Subsequently, crypto regulations too have been prepared and very much available with the Russian Parliamentarians.
State Duma, which is the lower house of the Russian Parliament, is consisted of Parliamentarians who are classified as “Deputies”. Recently, the Deputies at State Duma have decided that they should form a Working Group for the sole purpose of examining “crypto regulations”. It has been announced by Deputy Anatoly Aksakov that very soon the Work Group on crypto regulations will be conveying its first meeting.
The formation of the Working Group was the suggestion of Speaker of State Duma, Vyacheslav Volodin. Deputy Aksakov supported the proposal moved by the Speaker and said that it is a positive move in the right direction.
Aksakov pointed out that the draft of the crypto regulations contain several grey areas. Particularly, these grey areas impact digital currencies’ operations, taxations, and their circulation as well as issuance.
The law cannot be passed until lacunas in the law are removed which therefore requires discussions and examinations by legal minds. Keeping in view these important aspects, it is a wise decision the Parliament has constituted a Working Group, appreciated Aksakov.
For the time being, the Russian crypto regulatory framework is governed under the law called “Digital Financial Assets”. The law is in place though yet its application is on certain crypto operations. It neither deals with the crypto mining industry nor does it recognize mining and crypto as legal activities.
Now that the Working Group has been formed, the Group’s only purpose would be to examine Digital Financial Assets law. After examining the law, the Group will recommend its suggestions as to which laws need to be amended.
In addition, they would be suggesting whether crypto mining can be legalized or not. Furthermore, they would opine the Government on how it can bring crypto under the tax net.