Russia Legalises Cryptocurrency

Russia President Vladimir Putin signed Russian crypto bill into law on Friday, according to RIA Novosti.

The law will come into force on Jan. 1. 2021.

Main Features

The new law legalises cryptocurrency, and views it as a taxable property.

Yet, this legalisation comes with a condition; companies issuing digital currencies must be registered with the Bank of Russia.

However, the new law does not approve cryptocurrency as a means of payment for goods and services.

Crypto’s Long Journey in Russia

Initially, the bill was approved by the lower house of the Russian parliament on 22 July. Then, two days later, gained the approval of the upper house, according to Bitcoin.com.

Despite that seemingly quick process, the path was not always smooth.

Previous Controversial Bill

Previously, Russian lawmakers proposed a version of the law considered using Russian infrastructure in issuing or trading crypto as a crime.

This hardline stance provoked a backlash from crypto community.

The crypto lobbying group RAKIB warned that the proposed bill could cause the Russian economy to lose $10 billion in taxes annually, Coindesk reported.

The $10 billion is what RAKIB estimates for what the crypto industry would pay if it is able to operate legally in Russia.

Also, Russia’s Ministry of Justice and Ministry of economic development criticised the bill, Coindesk reported.

As a result, the bill was revised and a new more neutral bill was introduced.

Still More to Come

The new law is one of two bills related to regulating cryptocurrency.

A second more detailed bill is expected to be adopted later this year, Coindesk added.

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Marwa Sabry 10 Articles
A Journalist and translator with keen interest in exploring new innovative forms of economy.