Can Russia become the leader of Eastern Europe’s crypto boom?

Let’s cite the opinion of Martyna Dudek the paralegal at Wirex, a digital payments platform on the Russia new law about cryptocurrency which corresponds to U.K. legislators in genera excluding some distinctions between the ways of FCA and the State Duma.

The new Russian law “On Digital Financial Assets” provides accurate outline of the way of attitude from authorities towards crypto and the companies dealing with it on a daily basis.

While it might cause the delay with payments among payment processing companies and fintech organizations aiming to expand their presence into Russian market

While the approach of the Russian legislators toward cryptocurrencies is in lot of ways similar to the one of UK but supposes clear prohibition of the use of digital assets as a means of payment.

About new bill

The main thing worth mentioning is that new bill provides the definition of “digital assets” and their use. The bill also gives a non-exhaustive list of permissible use cases for DFAs, such as the purchase, sale, inheritance or exchange to other digital assets. But the possibilities are not endless. The law says that we can’t use or advertise digital as a means of payment for goods or services, and mention that digital assets do not represent in any way Russian or foreign currency.

One way or another new law represents significant step towards cryptocurrency implementation in Russian Federation as previous versions of law showed less friendly tone.

Cryptocurrency should be taxed

Like the one of UK new law supposes crypto taxation both on individual and commercial level.

English courts used the same approach during the review of the case of AA v. Persons Unknown, where he used crypto assets, such as Bitcoin (BTC) which had been considered as a property in frames of legislation. Additionally, Her Majesty’s Revenue and Customs claims capital gains taxes on personal crypto investments and income tax in the case of crypto trading done for commercial purposes.

Though it is unclear if Russian authorities observe the same procedure.

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