In Russia, a Committee on Digital Financial Assets and Digital Currency is Established

On 9 December, the Council of the Foundation for the Development of the Digital Economy approved a decision to establish the Committee on Digital Financial Assets and Digital Currency.

The new body will discuss measures to implement the Law on Digital Financial Assets (DFA) and the bill on cryptocurrency taxation, as well as further developing the framework for regulating the crypto market.

During the meeting of the Council for Strategic Development and National Projects, President Vladimir Putin urged decisive action for the digitalisation of the country:

“We must be globally competitive. There is nothing to fear here. Then we will broaden the horizon of our development, solve the problems related to rising labour productivity and with overall economic growth, and create a new structure for our economy.”

The committee will include the heads of the Foundation for the Development of the Digital Economy, members of the management board of the Council for the Development of Foreign Trade, as well as leading experts from industry associations and business communities.

One of the partners of the new organisation is the cryptocurrency exchange Binance.

“Russia must create conditions for additional opportunities in the sector, as well as a favourable market environment for new players. Digital financial assets and digital currencies must become a norm among the market’s financial instruments, such as bonds or futures contracts,” noted Gleb Kostarev, Binance’s director for Russia and the CIS.

The Law “On DFA”, which provides definitions of “digital financial assets” and “digital currencies”, was adopted in late July. It recognises cryptocurrencies as property and prohibits their use to pay for goods and services within the Russian Federation. The document will come into force on 1 January 2021.

In November, the Russian Ministry of Finance presented a new version of amendments to the Criminal Code and the Code of Criminal Procedure. According to them, holders of digital currencies face up to three years’ imprisonment if they fail to report to the tax authorities on operations valued at the equivalent of 45 million rubles or more.

In the same month, the Russian government introduced to the State Duma a bill regulating the declaration of cryptocurrencies.

Earlier, representatives of the Commission on Blockchain Technologies and Cryptoeconomy advised against granting the Federal Tax Service of Russia the power to determine the market price of cryptocurrencies.

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