RUSSIA ADOPTS LAW ON CRYPTOCURRENCY AND TOKENS

The new Federal Law “On digital financial assets and digital currency…” No. 259-FZ of July 31, 2020 provides regulations for digital assets (cryptocurrencies and tokens) and crypto exchanges. As expected, Russian Government has followed the way of detailed regulation of crypto market.

Cryptocurrencies have become the legal nature of property – one may mine, buy, sell and hold it, but may not use cryptocurrency for payments.

Tokens (digital rights) may be issued by individual entrepreneurs and companies. A token may be issued only within the informational system (blockchain) that belongs to a Russian company compliant with the requirements of the law, of the Central Bank and registered in a special register. A whitepaper shall be elaborated and published online.

The law provides the definition of a crypto exchange (place for purchase and exchange of various digital assets). The functions of a crypto exchange may be performed by banks, licenses exchange houses and Russian companies compliant with the requirements of the law, of the Central Bank and registered in a special register.

The law shall enter into force on January 1, 2021. Russian crypto and legal communities expect that the law will be amended and further improved by that day.

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