Russia’s Prime Minister Receives Proposals on Crypto Regulation, Potential Flaws in “First Reading”
A recent take on Russia’s viewpoints on crypto regulation has recently been published. As per Russian news outlet, RBC, the Russian Union of Industrialists and Entrepreneurs sent said proposals to Prime Minister, Dmitry Medvedev.
In addition to the proposal, it seems like the union’s Head, Alexander Shokhin expressed disapproval on the first reading that was adopted by the State Duma.
The letter – supposedly dated Monday, October 22 – emphasized greatly on three potential flaws found within the crypto related bills. The said bills’ first reading has since been adopted by the State Duma in late May 2018 and is currently being discussed upon.
What are these supposed flaws? Turns out that the RSPP feels that the bills may hinder with progress within the crypto sphere. In particular, the letter noted that tight regulatory frameworks will create a setback for the country’s economic stance. Here’s a quick extract with the most appropriate translation available:
“Such an approach will contribute to the withdrawal of [economic] relations [in the digital technologies] from Russian jurisdiction to foreign countries with a more favorable investment climate.”
Shokhin further argues that the need for regulations should not force changes onto the Civil Code, given that there already exists plenty “sub-legal normative acts.” To prevent such a hindrance that could potentially eliminate Russia from competing within this sector, RSPP thinks it would be beneficial to breakdown digital assets into three sub categories, each with its respective legal rule(s).
The first category will house tokens that show signs of “securities,” which will then be faced with “strict standards” under the Central Bank’s lead. The second category will house tokens deemed as “rights of demand”, in which a rather lax and liberal rules will be considered. Lastly, the third category has been set aside for “hybrid tokens”, which as per RBC will be “taken by the Central Bank.”
According to the President of the Russian Association of Crypto industry and Blockchain, Yury Pripachkin, the current proposed regulation is worrisome, as it does not focus on the important specs of the technology at hand, but rather on a broader level.
In particular, he said:
“[The bills] do not even mention the objects of regulation that determine the development of the new industry worldwide: smart contracts, contract money, mining, cryptocurrency, digital profiles, etc.”