By
Chimamanda U. Martha
April 22nd, 2024
Russia already boasts a robust regulatory system for digital assets, but it wants to do when more.
Russia is proposing a new crypto regulation dispensation as it continues its quest to fully regulate digital assets and utility tokens within its environs.
According to a consultative report published by the country’s chief financial regulator on Monday, the country already has a robust regulatory system for digital assets. But despite this fact, it still hopes to cover more grounds in its new proposal.
New Crypto Regulation to Digital Assets as Securities
As part of its new proposal, the Bank of Russia may begin regulating digital assets, in the same manner, it does traditional securities. However, that will be on the condition that such assets share similar properties as traditional securities.
Whereas, for cases where the technology backing the asset makes room for managing consumer risks, then a new regulatory approach can be developed, says the report. That is a different regulation from the one already in place for the securities market.
For most of the crypto regulation being proposed, it appears that Russia is looking to build on the stipulations of its 2020 law On the Digital Assets. But the major talking point was the taxation of digital securities and utility tokens. This seems to be a follow-up to the tax break that was recently approved by the Russian parliament.
The report also seeks a legal framework for tokenizing securities, debt, precious metals, and gems, and the issue of ownership rights in non-fungible tokens (NFTs).
Eyeing the Stock Market?
It is also worth mentioning that the Bank of Russia is looking to introduce digital asset trading into its stock market. But the rules of entry will be no different from that of the traditional securities markets. Investors will still have access to limits of 100,000 rubles a year ($1,640). However, the only condition for the limit to be more, is if the investor passes a financial literacy test.
The report also suggests that the regulator will be keeping a close eye on foreign-issued digital assets that may be intended for the Russian market. According to the regulator, only those that fulfill quality requirements will be allowed. That is those assets that have a known issuer, and a verifiable backing.
The Bank of Russia has now thrown the report open to the public and stakeholders, expecting commentaries until December 7.