- The news was announced on Oct 20 by Igor Krasnov and 15 prosecutor generals representing states of the Shanghai Cooperation Organisation
- Before this Law, virtual assets were assets in Russia but were kept under an unregulated ‘grey zone
The Prosecutor general Igor Krasnav of Russia declared that the civil servants of the country need to declare their virtual currencies together with their other assets from the next year. The rule will come to effect from Jan 1, 2021. The news was announced on Oct 20 by Igor Krasnov and 15 prosecutor generals representing states of the Shanghai Cooperation Organisation(SCO). The Law is named as Digital Financial Assets act and is signed by President of Russia Vladimir Putin.
Before this Law, virtual assets were assets in Russia but were kept under an unregulated ‘grey zone.’ The country of Russia will surely make progress by this Law. Only the downside is that people will no longer be able to keep their assets hidden.
Earlier in 2018, The
labor inistry of Russia said that the public officials would not need to declare their possession of virtual assets in their tax reports due to the unregulated nature of cryptocurrencies. Over the past three years, around $440 million worth of undisclosed crypto assets from many officials have been confiscated from the prosecutor General office.
So What Difference it will Make?
The Law is named the Digital Financial Assets act and was signed by President of Russia Vladimir Putin on Friday. The Law was approved by the State Duma, which is the lower house of the Russian parliament. This new Law gives a new definition to digital currencies.
After this news, it proves that electronic data are now capable of being accepted as a payment means and can be treated as an asset. Russian citizens from next year can use only a limited amount of digital currency at one time to pay for any goods or services.
Fields Where these Digital Currencies can Participate
The Law gives digital currency permission to participate in money claims, equity of a non-public stock company, and claim transfer of negotiable securities. These digital assets can be purchased, sold, exchanged, and can be pledged. However, using cryptocurrencies as a means of payment is still banned.
Changes in Bank Operations
The banks of Russia and exchanges can also become exchange operators of these digital currencies after their registration with Russia’s
central bank. The central bank of Russia has the authority to maintain the register of operators, register of the information system, and have the power to supervise the business of all information system operators.
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