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Russian Federal Government: Draft Crypto Law Coming Soon

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The Russian federation is moving closer to releasing a law that will govern Initial Coin Offerings and the trading of crypto tokens within the federation.


A Russian news agency RIA on Monday reported that the country’s Deputy Finance Minister, Alexei Moiseev, has announced that the disagreement between the Bank of Russia and the Ministry of Finance over what should be included in a draft law that will regulate the cryptocurrency industry in the country, has been solved amicably. The draft will be issued soon.

Beating the Summer Deadline

At the beginning of March, the Russian President, Vladimir Putin, had ordered that the crypto laws be published by July 1st. The order prompted the release of two draft laws from the ministry of finance and the central bank.

The two drafts agreed on crowdfunding using cryptocurrencies but had contradictory stances on the status of cryptocurrency exchange operations. The finance ministry’s draft is looking to impose a threshold for ICO activities in Russia in an effort to allow the sale of tokens in a regulated environment.

However, the bone of contention was whether the law should allow token offerings to be exchanged with Russian Rubles and other assets. The Russian Bank was reluctant to give the local investors exposure to cryptocurrency trading, arguing that digital currency that can be exchanged, can expose citizens to immense risks.

The disagreement between the two government bodies was seen as an impediment to meeting the summer deadline set by the President.

Now, the two government bodies have reached a consensus which will see the Bank of Russia’s opinion being given priority.

Moiseev said,

Yes. The central bank will make a decision,

CoinDesk reports that the new crypto draft may be published sooner than expected, now that the thorny issue in the two drafts has been resolved. Moiseev confirmed that only one bill will be presented to the country’s legislative chamber for consideration and contributions.

Earlier, there were rumors that the two bills from the Ministry of Finance and bank of Russia would be presented to the state Duma. Anatoly Aksakov, chair of the State Duma Committee for the Financial Market, indicated that the two bills were to be submitted to the chamber before the end of March for consideration; and further input from legislators and other stakeholders.

According to RIA, the Bank of Russia now says it may consider the option of allowing investors to exchange tokens issued under the proposed ICO framework with fiat currencies. However, the bank has not yet reached a decision regarding crypto-to-crypto trading as it is not sure how to deal with anonymous transactions – which may be used for dubious deals.

Do you think the Russian government is right in regulating the crypto industry? Share your thoughts with us in the comments section.

Image Credit: Deposit Photos

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