Russia Postpones Crypto Law Due to Coronavirus

Russia’s major crypto law adoption will be postponed again. The bill delays due to the alarming situation caused by the Coronavirus in Russia.

01 April, 2020 | AtoZ Markets – Anatoly Aksakov, Russian State Duma Committee on Financial Markets, said that the country’s crypto law (Digital Financial Assets) is now finalized. But it will not adopt before the end of spring 2020. Russian media RBC reported that Anatoly Aksakov unveiled the government’s plan to delay the implementation of the bill due to COVID-19. Aksakov admitted that previous delays in passing the bill caused by disagreement over the new type of assets between local authorities.

Russia Delays Crypto Law Again

Aksakov explained that the State Duma was largely in favour of crypto. But the central bank rejected the use and circulation of crypto assets in the country, in particular as a means of payment. Aksakov is the chairman of the National Banking Council of Russia’s central bank.

However, Russia’s long-awaited crypto law now postpone for another reason. As Russia focuses on priority actions against the COVID-19 pandemic, all legislative processes have slowed down, said Aksakov. The bill experienced several delays after being first introduced in January 2018.

Aksakov’s latest remarks come after Russia recorded its biggest increase in coronavirus cases in a day for the sixth consecutive day. Moscow authorities have already ordered residents to isolate themselves.

The new bill will clarify the status of digital assets in the country rather than prohibiting them. However, the use of digital currency as a means of payment will not accept. “We have come to the conclusion that it is necessary to define these tools, but to prohibit their use as a means of payment, said Mr Aksakov.

According to Mr. Aksakov, there will be an appropriate framework for the issuance and circulation of digital assets. However, another central bank official said in mid-March that the law would not allow the circulation and issue of cryptocurrency.

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Aksakov also stressed that the new law would not hinder the operation of crypto exchanges. It is in case they won’t be violating it. The official also stressed that the “digital financial assets” bill would not include regulations regarding the extraction of cryptocurrencies. However, Aksakov expressed confidence that the profits from crypto mining should be taxed.

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