In 2018, two important laws will be considered that are related to the calculation of the subsistence level and the regulation of cryptocurrency. This article is devoted to the consideration of the regulation of electronic money in modern conditions of Russia.
general information
The expansion of the virtual space in the field of financial regulation leads to the emergence of new financial products and tools. Cryptocurrency is one of such tools, which is based on the blockchain system.
Cryptocurrency is based on the vastness of the network and does not have a direct connection with any of the existing currencies. Also, cryptocurrency does not depend on the government or the central bank of a particular country. Each transaction is distributed between users and is recognized only after confirmation by other participants.
Bitcoin in law. How will the cryptocurrency market be regulated in Russia?
Almost all countries are focused on the development and establishment of a national cryptocurrency. However, the financial regulation of cryptocurrencies in Russia is just beginning to take shape. In different countries, the legal status of cryptocurrencies is different. For example, in India and Japan, cryptocurrency is officially recognized as a means of payment, since the legislative framework of these countries quickly adapts to innovation. In countries such as Japan, USA, Canada, there is also a favorable legislative environment for cryptocurrencies. In China, cryptocurrency is recognized as a virtual commodity for which a special taxation system has been created. In the United States, cryptocurrency is considered by law as a special exchange commodity and a specific form of money.
Major issues
The main problem of the legal regulation of cryptocurrency in Russia is related to the fact that it is perceived as a money substitute and a temporary phenomenon. Also, the big problem is the issue of cryptocurrency, since everyone can mine it on their computer. If we draw an analogy with a real monetary unit, then the issue of money is strictly prosecuted by law. Therefore, such actions are equated with illegal and are prosecuted by the criminal code. Uncontrolled use of cryptocurrency can lead to the impossibility of monitoring, which is aimed at financing the sale of drugs, people, weapons, etc. The consequence of this will be guaranteed impunity for the criminal acts of terrorist and other organizations.The need for state regulation of the cryptocurrency market in Russia is explained by the fact that electronic money is becoming the basis of the shadow sector of the economy.
When committing fraudulent transactions with cryptocurrency, it is impossible to identify the attacker. This is due to the fact that the system guarantees complete anonymity. If a user opens a wallet on the blockchain, the system does not request personal data and issues only an identification number. The need for legal regulation of the cryptocurrency market is associated with such factors as:
- illegal operation of the blockchain system;
- legalization of bitcoin will allow for control over financial transactions;
- the ability to close cryptocurrency from the black market;
- the possibility of using cryptocurrency only by exchange participants who work with the country's main financial regulator;
- ensuring maximum protection for market participants;
- creating a base for taxation and licensing of cryptocurrencies;
The Ministry of Finance is actively addressing the issue of cryptocurrency regulation in Russia. Interim results will be known in the near future, so the public will be able to familiarize themselves with them. The Ministry of Finance is developing bills that will regulate money surrogates and cryptocurrencies, as well as digital technology and mining. Studying the positive experience of European countries, you can create a competent legal field that will take into account the interests of business, the state and individuals. The legal framework will allow not only effectively combating money laundering, but also provide a high degree of security for citizens.
Bitcoin status not defined
Bitcoin is the very first cryptocurrency coin that was developed in 2009. This breakthrough decision provided an answer to the question of what money can become. Only in 2014, the authorities paid close attention to cryptocurrency as a financial phenomenon.
The Central Bank noted that this is an interesting financial instrument with an uncertain status. A year later, due to the lack of a legal framework, a lot of precedents appeared in the judicial practice, which were associated with the use of data moent. In 2016, a search was conducted for tools and new possibilities for regulating bitcoin. Until that moment, there was only one federal law that forbade the issuance of monetary surrogates.
Legal status
When considering the legal status of cryptocurrencies in our country, we can conclude that these coins are intangible assets. In Russia, there is no ban on the use of cryptocurrency, however, free disposal is prohibited. Acquisition through bitcoins qualifies as criminal activity, which entails criminal punishment. If a citizen decided to professionally engage in bitcoins, you can register as a business entity and arrange to receive bitcoins as income. There are the following methods for this:
- sale of certain services;
- assignment of claim;
- sale of financial assets.
Previously, the government was negative about the legalization of cryptocurrencies. However, the attitude of the Central Bank has changed significantly, so in the near future there will be legal regulators in this area of activity. In this regard, the development of a law on the regulation of cryptocurrencies in Russia is a matter of time.
To be or not to be law in Russia
In order to legalize cryptocurrency in Russia, relevant laws will be required. The legal framework will solve all the problems associated with control in this area. Otherwise, cryptocurrencies will go to a special platform, which will be associated with the implementation of criminal schemes.
Today, the Central Bank of the Russian Federation, the Ministry of Finance and the Interdepartmental Group under the State Duma, created to draft a bill on the regulation of cryptocurrencies in Russia, are developing legislation.
Different approaches
The government is considering different approaches to the development of legislation in this area of activity. There is an approach to cryptocurrency, considering it as foreign money with which currency transactions are made. However, this approach requires a significant change in currency legislation. This position is widely used in many countries that officially work with crypto coins. Another approach considers cryptocurrency as a means of payment.
Since in our country it is forbidden to use any money substitutes, then, having received the status of a means of payment without the simultaneous legalization of substitutes, bitcoin can be outlawed. Also, the law can consider cryptocurrency as a special type of property and transfer turnover value to it.In this regard, before the final adoption of the law, it is necessary to amend the existing legislation.
What is going on in Russia?
Our government is one step behind European countries. Developed countries generate a sufficient amount of data on which to develop their own legislation. However, with this position, the state has no control over this industry. Also, not in all cases the experience of others can be fully adapted to Russian conditions.
What should be regulated by law
The law should provide a clear definition of the status of cryptocurrencies and mining. Also, the law should regulate payments using cryptocurrencies. You should find out the need to enter VAT for payments by cryptocurrencies.
The state needs to regulate the use of cryptocurrencies for legal entities. Since blockchain technology is fertile ground for various fraudulent transactions, the legal regulation of cryptocurrencies in Russia is necessary.
Conservative look
In the field of cryptocurrency market regulation, many prefer a conservative approach. Some experts argue that cryptocurrency cannot be granted the status of a means of payment. Cryptocurrency can only act as a digital asset, the value of which will be equated with securities. Other experts believe that the legal framework should provide for control over the income from the sale of crypto coins. The law will affect the interests of many market participants; therefore, it requires a systematic approach.
What about ICO
The legal regulation of cryptocurrencies in Russia should also affect issues related to ICOs. The law will define such terms as tokens, crypto coins, digital mortgages, smart contracts, digital accreditation. Many experts argue that no country in the world has a separate legislation that deals with the regulation of ICOs. But, since even the very concept of cryptocurrency is missing in Russia, it is impossible to control the ICO industry. State regulation of cryptocurrencies in Russia implies the organization of a controlling body, as well as the creation of a legislative base.
Brief Summary
To date The legal regulation of cryptocurrency in Russia is at the development stage. However, by mid-2018, the government promises to create a bill that will regulate this area of activity. The draft law is being developed by specialists from the Central Bank and the Ministry of Finance. Russia can take as an example a successful version of the symbiosis of digital coins and standard financial systems used in Japan. The Ministry of Finance is promoting the use of cryptocurrencies as federal loan bonds, so cryptocurrency is used only in a closed area.
Perhaps the law will provide for preferential regions that will be beneficial for mining. However, the only right strategy has not yet been developed. The Central Bank has an unstable policy in this area of activity, but the president has a rather decisive position on this issue. Therefore, in the near future, the authorities will develop an effective bill, since the regulation of this area of activity is an important issue. Large investors will not send significant cash flows to this area in the absence of transparency in this area of activity. Until the legislative regulation of cryptocurrency is created in Russia, new fraud schemes will appear on the part of unscrupulous participants in this market.