Criticism For Proposed Cryptocurrency Regulation By Russian Authorities
Criticism aimed at authorities and the new legislation on “digital financial assets” is mounting in Russia. Local officials have rebuked lawmakers in the capital over slow progress, warning that the country will have to catch up with others. Experts from the crypto sector have expressed concerns about many unresolved issues in the proposed legal framework. Russian deputies are preparing to introduce two drafts on cryptocurrencies and crowdfunding, while more than 50 other digital economy bills are pending in parliament.
“Russian parliamentarians have spent a whole year discussing regulations, never reaching a unified stance on a concept to develop the digital economy. Authorities and entrepreneurs have not been able to formulate a consolidated position on cryptocurrencies”, a local official said during a meeting in the State Duma. “We need to hurry up”, Alexandr Brechalov, head of the Russian republic of Udmurtia, told deputies in the federal assembly.
Some of Brechalov’s comments are echoing concerns expressed recently by several legal experts working in the Russian crypto. The lawyers told Bitsmedia that the law prepared by the Finance Ministry needs serious revision – if adopted in its current shape and form, many questions would remain unanswered.
The draft law proposed by “minfin” deals mainly with ICOs, instead of providing a solid basis to regulate decentralized ledger technologies, the lawyers said. It actually limits the use of crypto technologies, the lawyer said. It actually limits the crypto technologies in other spheres, they added.
The fact of the matter is that Russian authorities have not yet decided on what to do with cryptocurrencies like bitcoin. The Central Bank of Russia has insisted on banning their circulation in the country, quoting concerns over money laundering. However, the draft presented by the Finance Ministry in January reads that citizen can buy and sell cryptos and tokens on licensed platforms, like cryptocurrency exchanges.
