Russia to Regulate Cryptocurrencies and ICOs22.12.2017

In Russia, the draft law on cryptocurrencies will be presented next week, said Anatoly Aksakov, chairman of the State Duma Committee for the Financial Market.

“The actual text of the bill is ready – it will be presented next week. It will launch a discussion on the definitions that are related to this market.The most important topic is the regulation of initial coin offerings (ICO),” Aksakov said.

He added that the law should touch ICO matters such as the way platforms operate, who gets access to investments, and what kind of projects may be selected for ICOs. The official said that the approach on ICOs would be liberal, but at the same time, investors should be protected, so specific rules are envisaged.

Aksakov said that the cryptocurrencies were defined as “other property.”

The bill will determine the general outlines of the cryptocurrency market. According to Aksakov, the new regulation doesn’t distinguish any names: Bitcoin, ethereum, or others. “All cryptocurrencies are different property,” he stressed.

He believes that cryptocurrencies should not be taxed. “I state my point of view, this property is a financial instrument, a financial asset, accordingly, its circulation should not be taxed on value-added," he said.

As for the regulation of the ICO market, the draft law envisages restrictions on the amount of investment of one investor in one project during the year. Aksakov stressed that this is not the latest version of the bill. He noted that cryptocurrencies would not get the status of legal money in the near future.

“The ruble is a national currency, note that this is a fiat currency, not a cryptoruble, and therefore no other quasi-currencies should appear. (...) It is not necessary to talk about a national cryptocurrency – it will not be legalized in any way in the near future, "- said the head of the Duma committee. According to him, crypto assets may appear in Russia, which are tied to assets denominated in rubles.

According to the deputy, the draft law can be adopted in the first quarter, at the end of March 2018.

Currently, the cryptocurrency transactions in the Russian Federation are not regulated by law.