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Russia Delays the law ‘’On Digital Financial Assets’’ due to Coronavirus Outbreak

Due to the onset of Coronavirus pandemic, Russia’s law about crypto adoption once again delays, as the chairman of the Russian State Duma Committee on Financial Markets conveys that the bill will take its practical shape by the end of spring 2020.

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The Russian media news outlet RBC reported that Anatoly Aksakov, chairman of the Russian State Duma Committee, unveils about the government plan to delay the implementation of the bill ‘’ On Digital Financial Assets’’ due to COVID-19.

The law about crypto assets was first introduced in January 2018 by the Russian government to regulate cryptocurrency in the country. But the law has not come in action so far due to some conflicts among the regulatory authority and central bank officials. Aksakov also accepted that delay happens due to opposing views in local authorities.

Aksakov is also the chairman of the National Banking Council of the country’s central bank. He explained that the State Duma favored the crypto to a large extent while the central bank rejected the use and circulation of crypto assets in the country especially crypto as payment means.

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But this time, the bill delays due to the alarming situation caused by Coronavirus as Russia reported the increasing number of infected cases in recent days.

The New Bill will Define the Cryptocurrency

The new bill will clarify the status of digital assets in the country rather than banning it. However, the use of digital currency as a medium of payment will not be accepted. ‘’We came to the conclusion that it is necessary to define these tools, but to prohibit their use as a means of payment. The law will define digital financial assets, the procedure for their issue and circulation. It will also include the issue and circulation of digital assets secured by goods,’’ Aksakov said.

The chairman of the State Duma Committee explained that crypto exchanges will not affect by this law. However, they have to obey the rules and regulations, and violations may cause hurdles in exchange’s working in the country. For cryptocurrency mining, there is no clear definition in the law ‘’On Digital Financial Assets.”

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Issuance and Circulation of Crypto

According to Aksakov, there will be a proper framework for the issuance and circulation of digital assets. However, another official of the central bank claimed in mid-March that the law will not let the circulation and issuance of cryptocurrency.

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