Russia takes a first step towards cryptocurrency legalization

The document about digital financial assets was adopted by the State Duma at the first reading on 22 of May. In the new version of the law tokens and cryptocurrencies are considered to be a property, not as a form of currency. It’s allowed exchanging tokens to rubles or to any other foreign currency. Mining is recognized as business and would be taxed, but only in case if the owner of a mining farm consumes the amount of energy which is exceeding the limit during 3 months.

The authors of the document think that considering crypto assets as a property helps to protect property rights in legal disputes. The Bills also regulate ICOs, what will let the Central bank of Russia limit the amount of money that unqualified investors can invest in ICOs.

According to the Deputy Minister of Finance — Aleksey Moiseev, the digital assets exchanges might be allowed in the nearest future. It will not be allowed to buy products or services using cryptocurrency, but it will be allowed to keep it and exchange. Moiseev also noted that the law about digital assets has no intention to evade sanctions, but it gives an opportunity for it.

Actually the document still needs a lot of clarifications, because the definition of mining is defined only by energy consumption, there is no definition of crypto exchange, it’s not clear how ICO is possible if tokens can be exchanged only to fiat money etc.