Russia Cryptocurrency Legislation Bill Delayed

russia

 

Three month back, Russia decided to opt for the new technological applications that are taking the world by storm. Russia announced legalization of cryptocurrencies. The government further confirmed on drafting a bill that would create the legal framework for trading in bitcoin, dash, ether, and other digital currencies.

As per current report, a working group within Russia’s state legislature is further delaying work on legislation bill. One of the drafting team member, Elina Leonidovna Sidorenko, conveyed – a number of factors are leading to the process being pushed back to the winter at the earliest.

Months back, Russian government agreed over optimization due to various reasons.
  • Downfall in oil prices. The United States and European Union imposed sanctions that dried up foreign investment, that affected the Banking sector.
  • Some banks exercised money laundering schemes to remove capital from the country.
  • Closure of almost 100 banks was visible in last three years.
  • Some banks were lending to companies with no real business activities, providing fictitious loans to individuals, and fraud involving tradable securities.

Closing Banks was not a solution to limit such frauds and its effects on the Russian economy.

As a result, to put a control over such instances Russian government adopted a more positive stance toward cryptocurrencies.


The Russian government is now more interested in the technological platform that supports the idea.


Governments’ biggest fear of cryptocurrencies is anonymity that could facilitate money laundering. But bitcoin has less anonymity than earlier digital currencies. The trading system is built on Blockchain. Blockchains are secured ledgers that allow transactions to be timestamped and verified. Thus, transactions are tracked.

Russian government acknowledged various benefits attached to such technology. Chances of getting hacked is negligible as it does not carry any central database or server. Secondly, blockchain is accessible to network members who can see bitcoin transactions in real time. Third, it is encrypted.

But the current note provided by Sidorenko seems like a barrier.

Fluctuations in the crypto market are driving a reassessment of the measure. Whether the bill should exist as a stand-alone measure or if it should be written as an amendment to an existing law. All stakeholders are aligned with what the bill should accomplish.

Active research is going on the issue and proper discussions are being held with ministries and departments.


She further told the publication (according to a translation):

“In April, we announced that the draft law would be ready in October. However, the situation on the market made us, in addition to the main bill, consider several more options. And now all these projects are postponed, we are watching the situation to understand: which solution will be optimal?”

 

Source : Coindesk  Businessinsider

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