Russia to Introduce Liability for Illicit Circulation of Digital Assets

The Bank of Russia proposes to introduce liability for illicit circulation of digital financial assets (DFA) and to establish a framework for taxing operations with them. The document, published on the regulator’s website, says.

The new laws are intended to create a comprehensive framework for regulating digital financial assets and utilitarian digital rights.

“At the legislative level, a regime for taxing operations with utilitarian digital rights and digital financial assets will be established, and liability for illegal circulation of DFAs will be introduced,” the document says.

The Bank of Russia noted that it continues to develop the digital ruble, and this will also require amendments to a number of statutes.

In addition, the Bank of Russia plans to strengthen the involvement of depositories in servicing digital assets and digital rights by issuing them corresponding receipts.

“For the central depository, issuing such receipts is proposed to be mandatory upon its receiving a corresponding request from holders of digital assets and digital rights,” the central bank noted.

As noted, since 1 January 2021 the Law on Digital Financial Assets has been in force in Russia. DFAs are digital rights the issuance, accounting and circulation of which are possible only through entries in an information system based on a distributed ledger.

To issue DFAs, information about the issuer, data about the information-system operator, the type and scope of the rights secured by the assets, data on the issue and other information must be provided.

The Bank of Russia has set a limit on DFA purchases by individuals, who are not qualified investors, at 600,000 rubles within one year.

The limit does not apply to non-qualified investors that are legal entities.

Additionally, non-qualified investors cannot acquire DFAs issued in foreign information systems that confer rights to issue securities, nor if the issuance decision does not specify the term of obligations.

Read ForkLog’s bitcoin news in our Telegram — cryptocurrency news, prices and analytics.