Outcomes of the Moscow forum «Blockchain: dialogue of business and authorities»
The research and practice forum «Blockchain: dialogue of business and authorities» was held in Moscow on April 13.
The event was attended by State Duma deputies, relevant ombudsmen, Russian academics, representatives of business interests, experts, members of the interagency working group on the cryptocurrency turnover risk assessment, and representatives of public agencies.
The forum moderator, Head of the Interagency Working Group on Legal Regulation of the Cryptocurrency Turnover, Doctor of Law, Professor of MGIMO Elina Sidorenko expressed her view that the event had resulted in passing a unified concerted decision on the need to adopt a bill on cryptocurrency turnover containing the definition of the core positions of this document. According to Sidorenko, there is no doubt that cryptocurrency needs favorable legal conditions in Russia, including those in the tax field. The forum moderator highlighted the need to develop blockchain technology.
A State Duma Deputy from the LDPR faction Andrei Lugovoi emphasized that even people who lack confidence in cryptocurrency can’t deny to acknowledge the benefits of the blockchain technology. According to Lugovoi, the technology will facilitate direct communication between individuals and legal entities, society and the state. The MP cited data stating that more than half of national registers will function on the blockchain in a decade. According to the estimates of the World Bank, 10% of the world GDP will be stored with the help of blockchain as early as in 2017.
Lugovoi is confident that a ready bill on the regulation of cryptocurrency turnover will be read by the agencies and the expert community in the second half of 2017. The MP suggested setting up an interagency working group on assessing the risks of the cryptocurrency turnover.
Deputy Director of the Rosfinmonitoring Pavel Livadny has noted that his agency sees the risks of the cryptocurrency turnover, but nevertheless considers the blockchain as an advanced, multi-purpose tool. Such a tool should be legalized in Russia. According to Livadny, cryptocurrencies need legislative regulation, and they are banned only in a few countries.
The leader of the Party of Growth, business ombudsman Boris Titov suggested setting up a cryptovalley within the Crimean peninsula, similar to the Crypto Valley initiative implemented in the Swiss Zug. According to Titov, distribution of cryptocurrency in the Crimea will allow to raise regional funding under sanctions more efficiently. According to Titov, blockchain will strengthen confidence in the electoral system through the implementation of voting based on the distributed ledger technology.
The founder of the Waves blockchain platform Alexander Ivanov announced the necessity to create legal norms regulating the operation of the points of exchange of the fiat currency for cryptocurrency and backwards. According to the Waves founder, 161-FZ is currently enforced in Russia, which regulates operations with electronic money. Similar legislation can also be developed to legalize the depositing and withdrawal of cryptocurrency. At the same time, the legislation should take into consideration both the technological features of the cryptocurrency and the role of the regulator and other players on the financial market.
Ivanov also told the public authorities about the ICO mechanisms and suggested making this method of raising investment absolutely legal in Russia for the first time in the world. This crowdfunding tool can absolutely legally function within the existing investment market.
According to the Waves founder, the statutory framework BitLicense implemented by the New York State Department of Financial Services (NYSDFS) can serve as a guide for Russian regulators. BitLicense is a license that all companies processing virtual currencies are required to obtain under the regulatory requirements of the State of New York. For example, BitLicense regulates the following aspects:
• Storage, possession and management of virtual currencies on behalf of third parties;
• Exchange of virtual currencies;
• Sale and purchase of virtual currencies;
• Management, administration or emission of virtual currencies.
The very fact of holding the forum «Blockchain: dialogue of business and authorities» proves the warming of the Russian authorities’ attitude to cryptocurrencies and the Blockchain technologies, being their basis. The state will probably make its next step towards the formation of legal regulation aimed at developing cryptocurrencies and Blockchain in Russia.
