- The new draft bill on digital financial assets defines cryptocurrency, However, prohibits its usage in Russia to pay for goods and services.
- The Russian government has officially stated that the criminal law will protect the domestic currency, Ruble.
- Per Russian officials, the decentralized feature of digital currencies makes it difficult to regulate them on a large scale.
During these difficult times, governments and various agencies are planning to launch their cryptocurrencies. Additionally, the third generation of digital currencies is also on the rise. Per Reports, The new draft bill on digital financial assets defines cryptocurrency, However, prohibits its usage in Russia to pay for goods and services. Despite strict laws already in place, the growing number of crypto exchanges and P2P trades are frightening the Putin-led government.
Strange World To Regulate The Internet
Scrutiny around the world has increased in terms of the sale, buy, or storage of cryptocurrencies. Furthermore, the Russian government has officially stated that the criminal law will protect the domestic currency, Ruble. They would not like that to happen and plan to bring in various laws along with the Bank of Russia. The decentralized feature and regular peer-to-peer exchange of digital currencies make it difficult to regulate them on a large scale.
The law in Russia and to be specific in State Duma will be adopted on 1st January 2021. It will currently undergo the second and third readings in the legislation. Vladimir Putin has previously stated that activities like money-laundering and human trafficking could be easily exploited with the help of cryptocurrencies.
The law further claims that the digital currency is not a monetary unit of the Russian Federation or an international entity. Hence, it will be difficult to use it as a means of payment within the country without proper laws enacted.
Cryptocurrency Yet to Achieve Legal Status in the Country
The soon-to-be-passed bill is devoid of terms like ‘mining’ and token. Additionally, cryptocurrency does not have legal status in Russia. Moreover, a separate law to be enacted this fall will help it gain legal status. The Russian government is fair enough to not allow digital currency to be used as a means of exchange and storage of value within the country. Investors feel that the government has failed them with the latest regulation bill. They feel it is not a development for the investors to rejoice as it forecasts a bleak financial future.
A lot of Russian investors believe that cryptocurrency has a bright future only if the government puts out a helping hand. Digital currency investors have found their way out with regular returns. The technology is complex to understand for many traditional investors but the missed opportunity would hurt a lot in the long run. The developing financial technology around the world has gathered more eyeballs to benefit from what it has to offer.