Does Putin Want Greater Crypto Adoption?

By Rishma Banerjee

The digitization of our society and the advancement of a digital economy is taking place at a massively accelerated rate. As this digitized era becomes more and more consolidated, governments must enact new laws and rights in regard to informational data, the transferring, use, and disposal of data, among other things.

Vladimir Putin, the president of Russia has recently made it clear that he is keen to stay at the forefront of developing a clear and concise legal framework for a digital economy.

As per a press release issued by Russia’s parliament, the Duma, they have voted to enact new digital rights legislation which will be implemented in October 2019.

The new law will change Russia’s civil codex to include the concept of “digital rights” and will also be forming the basis of the development of the digital economy within the Russian Federation.

The press release elaborates that the new law will determine how digitized rights can be exercised and transferred as well as establishing rules for digital transactions and contracts.

Vyacheslav Volodin, the Chairman of the State Duma, said

“[The law on digital rights] forms the basis for the development of the digital economy. This is a new area for our rights because it is important for us to consolidate the basic concepts. ”

What’s interesting about the digital economy and digitization within our society is that cryptocurrencies and blockchain technology are at the forefront of this new era. Therefore, it appears that Putin and Russia are setting themselves up to be a leader in this new era by making the development of their digital economy a priority.

Unlike China and India, who have issued bans on crypto-related services and denied crypto exchanges access to banks, Russia has always been known to take a cautious but more positive approach to the nascent blockchain industry.

For instance, Russia is also nearing completion of a specific regulatory framework, which according to reports is set to be passed by July 1, 2019.

Putin has elaborated that the regulatory framework will include federal laws aimed at the development of the digital economy, which includes the “digital rights” law talked about here.

Therefore, it can be expected that more laws aimed at developing the digital economy will come about soon and should gain a clear understanding of Russia’s take on the cryptocurrency industry in the coming months.