Victor Ugochukwu · Dec 14, 2020 . 5min read
Russian government keen on considering Crypto as property
Russia plans to treat cryptocurrency as property, PM Mikhail Mishustin states that the government is preparing to regulate the crypto.
By Komal Joshi · Nov 27, 2020 . 6min read
Mikhail Mishustin, the Prime Minister of Russia, has suggested that the government could design a legal framework to preserve the rights and interests of cryptocurrency holders in Russia. Thus, accelerating the development of the Russian cryptocurrency market. Mikhail Mishustin, the Prime Minister of Russia, declared on Thursday that the government intends to treat crypto as property. Thus, cryptocurrencies buyers will be capable of claiming and protecting their property rights in Russian courts.
According to the reports, the meeting ensued on 26 November, Mishustin suggested that owing to the increasing interest in cryptocurrencies, the government is preparing to regulate the crypto market in a civilized manner. He also described a method to include several developments in Russia’s tax code to preserve crypto holders.
Russia struggles for Crypto Regulatory Framework.
For the uninformed, Mikhail Mishustin belongs to economics background. He earlier worked as Director of the Federal Taxation Service for over 10 years and succeeded the PM office in January 2020. He stated that digital financial assets are almost nascent in the market, and the nation requires a robust regulatory framework to preserve the rights of crypto owners.
However, Russia is fighting to have a clear regulatory framework for cryptocurrencies. Notwithstanding, the support of the Digital Financial Assets and Digital Currency Act earlier this year. The nation is still not transparent about the treatment of crypto assets. Vladimir Putin inked a crypto bill in the country. The law provided crypto to obtain legal status in the country. However, they cannot support payment for goods in the country. Banks and exchanges are also entitled to be directors of the cryptocurrencies as long as they are listed with the Bank of Russia.
Although, after signing the bill, the country’s Ministry of Finance imposed severe penalties for crypto holders. The bill imposed penalties on people who do not report their holdings above $1,280. Moreover, proposed sanctions include 30% fine or jail term would be applicable for owners who do report their holdings after it gets more than 100,000 rubles ($1,280), the bill proposed.
Nevertheless, the Ministry of Justice sprayed down the bill saying that it is under study for adoption. Mikhail Mishustin, Russia’s prime minister, elected in January, has been a pro-crypto economist. Simultaneous with his appointment, Mishustin agreed to transform the country into a digital platform for the people.
Follow Cryptodose for more updates.