Judge Encourages “Digital Assets” to Be Included with Russian Civil Law
- A judge and a local official spoke in favor of including the term “digital assets” in Russian Civil Law.
- Russia has still not established clear cryptocurrency legislation, due to delays regarding the terminology involved.
Cryptocurrencies are becoming an increasingly larger part of the financial landscape. In Russia, where the regulations are still evolving, a judge recently stated at the Supreme Arbitration Court that “digital assets” needs to be a term that is included with Russian Civil Law.
A judge at the Supreme Arbitration Court, along with chairman Lyudmila Novoselova of the Court for Intellectual Rights of Russian Federation, have already spoke about the plans for the institution to develop digital rights legislation. Novoselova provided her testimony in Ekaterinburg during the first retreat of the presidential council, which is focused on civil law, showing her confidence in including digital money with the Russian Civil Code.
Much of the purpose of including digital money is based on the lack of understanding of the industry in Russia. The judge added that regulations is a necessity for the digital assets field, especially with tokenized objects, considering the current vagueness of the tax system on this topic.
The official added that it would be in the best interest of Russian lawmakers to follow along with the use of regulations for risk management, establishing legislation that governs this industry instead of banning it. One of the issues that Novoselova specifically touched on is how to address the amendments, in relation to attracting investments with alternative methods. A prime example of these methods is crowdfunding, rather than just a token sale.
The State Duma, which is the parliament in Russia, amended legislation involving digital rights within the Civil Code of the Russian Federation in March this year. These amendments created a basis from which the digital economy can build their regulations upon.
The adoption of cryptocurrency legislation has been delayed in Russia several times. Much of the concern surrounding the Financial Action Task Force on Money Laundering has to do with the need to use terminology that is specific for cases of cryptocurrency.