COVID -19 Outbreak Delaying Russia’s Legislation On Cryptocurrency

According to a government official, the outbreak of COVID-19 has postponed Russia’s legislation on cryptocurrency. The legislation is supposed to provide guidelines on cryptocurrency usage in the country.

Russia Delaying Cryptocurrency Legislation

The legislation that is being worked upon since early 2018 in Russia is yet to be implemented. The legislation adoption has delayed a few times due to internal disputes. This time also its adoption is postponed but the reason is different.

The COVID-19 outbreak that is hitting the world so hard has also shown its impact on the adoption of legislative processes in Russia. Anatoly Aksakow, head of the Duma Committee on the financial market, warned that the document “On Digital Financial Assets” might be delayed until the end of spring due to coronavirus.

While discussing the upcoming legislation, Aksakow explained that it would define digital assets, but it will also ban them from serving as payment methods.

As he put it,

“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.”

Legislation To Prevent Money-laundering

The new law will ensure prevention of money -laundering with strict rules. It would tackle illegal activities related to digital assets. Officials mentioned that the law would regulate but not interfere with cryptocurrency exchanges as long as the law is not violated.

Blockchain-based Cryptocurrency Ruble

According to Cryptopotato, the Central Bank of Russia is testing digital currencies in a regulatory sandbox. The country is almost done with the development of its central bank digital currency (CBDC). Duma representative confirmed that a blockchain-based cryptocurrency ruble would appear and the Central Bank of Russia will finely regulate that.

Kapil Gauhar

Kapil Gauhar is the founder of Blogger’s Gyan. He is a Passionate Blogger, a Big Thinker and a Creative Writer. His passion for doing friendship with words and letting people know about the wonders of the Digital World is what motivates him to take writing as a career.