Russia to Recognize Digital Financial Assets as Property

In letter

  • The Russian government plans to classify digital financial assets as property, said Prime Minister Mikhail Mishustin.
  • Possible changes should also hinder “shadow schemes”, he added.
  • However, his comments are mostly related to security token-like assets and not cryptocurrencies, experts said.

The Russian government plans to steer the development of the local cryptocurrency market in a “civilized direction” so that the owners of such assets can protect their rights and interests, the country’s Prime Minister Mikhail Mishustin said during a To meet took place today.

“We’re going to make a number of changes to the tax code. Digital financial assets are recognized as property and their owners can rely on legal protection in the event of illegal activities and defend their property rights in court, ”said Mishustin.

According to him, potential new changes should also significantly hamper any “shadow schemes” that crypto might involve. However, one expert noted that Mishustin’s recent comments are nothing new.

Speak with DecryptArtyom Tolkachev, attorney and CEO of the decentralized finance firm Tokenomica and founder and former head of the Deloitte CIS blockchain lab, stated that Mishustin hadn’t brought anything new to the table today. Changes to the tax code were announced some time ago, as the law “On digital financial assets” (DFAs) even implies them directly.

Bitcoin is the number one cryptocurrency by market capitalization. Image: Shutterstock.

“Another thing is interesting: It is important to understand that cryptocurrencies are not ‘digital financial assets’. DFAs are more of a security token by nature, so it’s a bit strange that they were viewed side by side at a government meeting, ”Tolkachev said Decryptadding, “It almost seems like the government doesn’t always understand the laws it has already passed.”

In addition, the federal law “On Digital Financial Assets” already contains provisions that provide for the possibility of legal protection in the event of a preliminary declaration of cryptocurrencies, added Tolkachev.

“Therefore you shouldn’t expect any major changes. Just as there was no regulation of cryptocurrencies in Russia before, there is none today – and that is a problem. In addition, we have seen more and more banned initiatives recently, and nobody needs the regulation of the EDA, which are actually security tokens, ”summarized Tolkachev.

As Decrypt Russia has reportedly taken some steps recently to relax its strict crypto laws– But Bitcoin holders could still face jail time for failure to comply.