Local officials in Russia are criticizing the proposed legislation on cryptocurrencies while also complaining about the slow movement of discussions that would have long helped the country develop a united stance on how to make the digital market flourish. Cryptocurrency experts are worried about the slew of problematic issues present in the proposed legislation.
According to the head of the Russian Republic of Udmurtia, Alexandr Brechalov, regulations were merely discussed for an unnecessarily long time with no decided position taken. He stated, “Russian parliamentarians have spent a whole year discussing regulations, never reaching a unified stance on a concept to develop the digital economy. Authorities and entrepreneurs have not been able to formulate a consolidated position on cryptocurrencies.”
Brechalov believes that any legislation proposed for the cryptocurrency sector lacks guidelines that will help further develop the digital economy. Issues such as cryptocurrency exchanges and cryptocurrency transactions taxation similarly remain unresolved. He also suspects that ICOs are currently over-regulated – a situation that would compel firms to seek different territories.
Brechalov is optimistic of crypto’s future. His own republic shelters large industrial companies and he is similarly welcoming of pilot projects related to digitalization – specifically those that would make specific sectors of the economy flourish. Brechalov stated, “I heard suggestions about pilot projects. Udmurtia is ready to be the sandbox”.
Brechalov’s point of view is echoed by most locals who believe that Russia could eventually become a major force in the field of digital currency. Mining facilities could also pop up in various places in the country due to Russia being a viable source of cheap electricity.
Law experts similarly agree with Brechalov’s opinions and cite the absence of a legal definition for a digital coin in the legislation being proposed. The ICO guidelines also lack a definitive status for tokens. Smart-contracts, in the proposed new legislation, are considered ordinary contracts. However, the same term is non-existent in the Civil Code.