In Russia, lawyers have taken matters into their own hands when there is no comprehensive regulatory framework for cryptocurrencies. When the current legislation does not reflect the particulars of the growing digital economy and propose solutions, a new advisory body of legal experts has been allotted to look after the cases.
Regulating Proper Rules to Solve Problems in Legal Commission
A specialized commission that will address the legal challenges in the crypto industry has been accepted and established by the Russian Lawyers Association and an educational organization called Blockchain Lawyers during a round table conference. Some sectors such as blockchain development, artificial intelligence, quantum technologies and the internet of things can also work with this industry.
The Russian outlet Bitcrypto News reported, to provide answers to the outstanding questions and solve problems arising from the lack of proper crypto regulations, will remain as the commission’s main task. It is also deeply expected that, the new body will be able to give legal definitions to many new economic and technological phenomena in the digital space.
To overcome the specific challenges in the industry, the members of the commission will support projects and organizations. For example, accounting, taxation, etc. Recently, cryptocurrencies are treated as “other property” by the Russian government whereas, the digital coins can also represent property rights in the case of ICO tokens but the Russian tax code applies different rates to these two categories.
To define the legal nature of cryptocurrencies and tokens, the records of accounting competently will be extremely difficult, until Russian lawmakers adopt new laws says, Mikhail Uspenskiy, a partner at the law firm Taxology. The adoption of the legislation that was filed has been postponed by the lower house of Russia’s parliament, the State Duma.
Crypto Regulation is favoured by Russian Authorities’ Conservative Approach
The law “On Digital Financial Assets” from the main bill refers that, Russian deputies has eventually dropped several key terms such as “cryptocurrency” and “mining” after introducing a number of changes to the original texts. An alternative bill that grants cryptocurrencies a “special status” has been protested against its latest version and even proposed their own by the representatives of the crypto industry.
The conservative regulatory approach was defended by Russia’s deputy prime minister, Maxim Akimov. He has said that the authorities in Moscow don’t execute any plans for the significant amendments to the draft legal framework when it is dealt with the recent market slump that decreased the capitalization of most decentralized cryptocurrencies.
To regulate law enforcement in the crypto industry and to provide protection for the rights of cryptocurrency holders, was the other topics that were discussed by the legal experts where even the new commission is expected to deal with these issues. Within the Moscow regional branch of the Russian Lawyers Association, the body will be allowed to get operated.