Putin Issues Cryptocurrency Regulation Adoption Mandate

Putin Issues Cryptocurrency Regulation Adoption Mandate

Russian President, Vladimir Putin, ordered the government to ratify and enforce federal laws pertaining to cryptocurrency with 1 July 2019 as the deadline; introduced amendments to AML laws

The Kremlin published a 47-point list of instructions on their website which includes urging the government and the State Duma to work together for the adoption of federal jurisprudence geared towards developing the country’s digital economy. To espouse this adoption the document called for, establishing the process for ‘conducting civil law transactions in electronic form,’ regulatory guidelines, and drawing more ‘financial resources’ through digital technologies.

Officials handed the responsibility for this order are Dmitry Anatolyevich Medvedev, Russian Prime Minister, and Vyacheslav Viktorovich Volodin, Chairman of the State Duma. The deadline for accomplishing this is on 1 July 2019.

Last October 2018, it was reported the term ‘mining’ was removed from a draft legislation during a second hearing. Anatoly Aksakov, head of the Duma on Financial Markets, said the country’s economic system does not need bitcoin.

In January 2019, the legal definition for ‘digital financial assets’ was stretched to accommodate cryptocurrencies. Citations relating to cryptocurrencies, mining, smart contracts, and tokens are still not included in the draft bills.

Amendments to Anti-Money Laundering Law

The Supreme Court of Russia added the use of cryptocurrencies in illegal activities to the list of crimes relating to money laundering. Alexander Chervotkin, a Russian judge, accounts that within three years of the ratification of the AML decree (signed in July 2015), criminals resulted in using cryptocurrencies for criminal acts.

He points out that drug dealers convert cryptocurrencies gained illegally into fiat, and because of this, Russia’s criminal code should include the new emerging technology. Henceforth, it will be considered as money laundering when cryptocurrencies acquired unlawfully are exchanged to paper money.

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