The State Duma Adopts a Bill on Cryptocurrencies in First Reading: Key Provisions
This Tuesday, the State Duma passed the bill on digital financial assets in the first reading. Information about this was published on the website of the authority.
The bill enshrines such concepts as “digital transaction”, “digital record”, “register of digital transactions”, “digital record validation”, “mining”, “cryptocurrency”, “token”, “smart contract”, etc..
According to the Chairman of the Financial Market Committee Anatoly Aksakov, the introduction of appropriate definitions will help to ensure legal protection of market participants.
A smart contract means an agreement concluded in electronic form, the fulfillment of obligations under which is carried out using digital financial technologies.
Also, according to the bill, the difference between a cryptocurrency and a token is in the purpose of the issue and the number of issuers: a token has a single issuer, while a cryptocurrency can have multiple issuers / miners. Neither one nor the other is legal tender on the territory of the Russian Federation, but is property, the document says.
It is allowed to exchange tokens for rubles or foreign currency through operators of the exchange of digital financial assets, which can become legal entities created and operating in accordance with the established requirements. For example, the exchange of tokens can be carried out through the Moscow Exchange.
“Mining is recognized as an entrepreneurial activity in the case when the person who carries out it, for three months in a row, exceeds the energy consumption limits established by the government of the Russian Federation,” the bill says.
In addition, the document establishes the mechanism for holding an ICO and provides for restrictions on the maximum amount of investment by unqualified investors. The amount itself is not indicated in the bill, since it has yet to be established by the Bank of Russia, which is endowed with the appropriate powers..
The bill was prepared in accordance with the instructions of the President of the Russian Federation following a meeting on the use of digital technologies in the financial sector, held on October 10, 2017.
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