How cryptocurrency regulation in Russia will change in 2021 – 5 opinions

CONTENT

  • Experts differ on the future of regulation

  • Laws can change more than once

  • The future of the digital asset market in the Russian Federation remains vague

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In Russia, since 2017, the authorities have been working on the formation of a legal framework for the digital asset market. 3 years later – in the summer of 2020 – the President of the Russian Federation signed documents that should become the basis for regulating the industry.

The editorial staff of BeInCrypto decided to ask the experts how the legal boundaries for the members of the Russian crypto community will change, and what investors of digital assets should expect next year.

Opinion 1 – regulation will bring the industry out of the shadows

One of the first to share his opinion on the issue with us entrepreneur and financier, member of the IDA Professional Directors Association, Nikolay Neplyuev. He believes that from 2021 the entire sphere of paperwork, speculation and manipulation with cryptocurrency will be strictly controlled by the state and taxed..

Hiding accounts, income and operations with cryptocurrency, in his opinion, will face a fine and criminal liability for Russians.

“It is assumed that at first, while the bureaucratic mechanism in this segment is being adjusted, penalties and criminal liability will be minimal,” the expert explained his point of view.

First of all, according to Nikolai Neplyuev, regulators will introduce preventive measures to give citizens time to adapt to the existing system and assess the marginality of this segment, adjusted for tax payments and timely preparation of financial statements. In the future, the expert is sure, it is planned to tighten control measures and responsibility.

A map of the legality of cryptocurrencies in the world, using the example of bitcoin. Data: CoinDance

At the same time, Nikolai Neplyuev warned that after taxes are paid, some transactions with low-income cryptocurrency will become unprofitable.

“At first glance, it seems that this infringes on the rights of Russians and deprives them of income. However, this approach levels out only a small segment of crypto operations and will allow the official development of the mainstream of the crypto community, attracting significant investments, which is much more profitable, “the expert explained..

In his opinion, a systematic legislative approach will make it possible to take this area out of the shadow format and protect the rights of market participants, which was previously impossible due to the lack of a legislative framework in this area of ​​activity..

“Summarizing, we can conclude that from 2021 the Russian crypto community will become less chaotic, more systemic, structured, controlled and protected by legislation. It is expedient and cost-effective for everyone, except for shadow structures “, – Nikolay Neplyuev summed up.

Opinion 2 – determining the attitude towards cryptocurrencies in Russia will benefit the country

Former Director of Business Development Department of Rambler Group, Director for CIS of Copper Sergey Shanaev also shared his opinion with BeInCrypto (BIC).

BIC: How do you think the Russian government will regulate the crypto industry in 2021?

“Back in July, Russia developed a law on the use of digital assets, which will come into force on January 1, 2021. The new law allows Russian citizens to trade digital financial assets in Russia, but will prohibit the use of cryptocurrencies to pay for goods and services. An important positive point arising from this law is that the courts are now empowered to resolve disputes related to digital assets, “said the expert.

At the same time, Sergey Shanaev drew attention to the fact that, as part of the mission to strengthen the country’s international position, the government will strengthen control over the Russian market for digital assets, instead of introducing a complete ban on their use..

“Despite a fairly high level of uncertainty, the current version of the law on the CFA defines cryptocurrencies not as“ illegal ”, but rather as an unacceptable method of payment, which can be considered as another step by Russia to clarify its position on digital assets, ”the expert noted..

At the same time, Sergei Shanaev that a much greater level of believes clarity is required to increase the confidence and security of the Russian crypto community..

BIC: What other regulatory measures can the Russian government take in 2021? What changes can the participants of the crypto community expect?

“While the blockchain continues to receive strong support from the government, and Anatoly Aksakov, a member of the National Banking Council of the Central Bank, recently called it“ the technology of the future ”, the attitude towards digital assets is somewhat different,” Sergei Shanaev said..

The Russian government, in his opinion, continues to take a tough stance on cryptocurrency regulation and shows no signs of softening its approach by 2021..

The latest decisions of the Ministry of Finance of the Russian Federation, the expert noted, suggest that the owners of cryptocurrencies who have not reported cryptocurrency transactions in the amount of 45 million rubles or more will go to jail.

However, interest in cryptocurrencies in Russia is steadily growing.  According to the University of Cambridge, there are currently over 6 million digital asset users in Russia. According to Sergey Shanaev, it is this trend  prevented the government from introducing a complete ban – at least for now.

A graph that reflects the volume of purchases of bitcoins for rubles. Data: LocalBitcoins

“We believe that in order to achieve a balance between regulation and the development of digital assets, a more effective approach would be to involve institutional assets, which will increase the volume and actually reduce volatility,” the expert noted..

In his opinion, it is now very important what position Russia, as a world power, will take in relation to cryptocurrencies, since countries around the world weigh the pros and cons of digital asset regulation..

Sergey Shanaev drew attention to the fact that the global financial heavyweight China, which banned ICOs and digital assets in 2017, recently allowed bitcoin trading, recognized them as virtual property, and began developing CBDC.

The expert also mentioned the work of the Central Bank of Russia on the creation of the digital ruble. The financial instrument, according to Sergei Shanaev, will allow the Russian government to maintain its monetary authority, while promoting the digital ruble in world trade and finance.

Opinion 3 – regulation won’t be easy

Director E.M. FINANCE Evgeniy Marchenko also took part in the discussion of the future regulation of digital assets in Russia in 2021.

The expert noted that initially, cryptocurrencies were conceived as a completely new financial instrument independent of states and governments. However, with the development of this market, fraudulent schemes began to appear. Cryptocurrencies are a new financial instrument that opens up their own prospects for each market participant. Some consider digital assets as a source of … More, which require legal regulation.

Yevgeny Marchenko recalled the statement by the press secretary of the President of the Russian Federation, Dmitry Peskov, in which he noted that the Russian government is going to control the cryptocurrency market as part of the recommendations of the intergovernmental organization to combat money laundering (FATF ). According to the politician, this will reduce financial risks in this area..

“Due to the fact that the cryptocurrency sector is developing very rapidly now, it is difficult to quickly create a new legislative framework. However, a few months ago, the FATF began to develop unified standards for intergovernmental organizations that relate to combating money laundering, ”the expert said, adding that the developers should submit them by the end of the year.

Wherein, already in 2021, Yevgeny Marchenko specified, these standards will begin to be used to regulate crypto markets.

“This will not be total control by the state, but all participants in the crypto community will have to adapt to the new standards,” the expert concluded..

How cryptocurrency regulation in Russia will change in 2021 - 5 opinions

Opinion 4 – regulation of the digital asset market in Russia may be delayed

Chief editor of the Cryptonization project Irina Dzhigilo, in turn, she noted that now in Russia there is practically no regulation as such. The expert noted that at the moment the country has the most general and only “Law on CFA”, which will come into force on January 1, 2021.

“The work on regulation will certainly continue. And it will continue in the direction of clarification “, – explained her point of view Irina Dzhigilo.

The first thing that, in her opinion, needs to be worked out by the regulators is the issue of profile documents directed to the executive part. The expert believes that additional instructions should soon appear on how to monitor and comply with the law..

The second thing that should appear, in her opinion, is separate regulation in terms of the financial component: exchange operations, loans in cryptocurrencies, etc..

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“Most likely we will see new types of permits and licenses that will regulate the financial sphere related to cryptocurrencies. This can also include a separate regulation for accounting, storage and reporting “, – said the expert.

Also, in her opinion, regulators need to work out in detail how the automatic conversion from cryptocurrency to rubles for settlements will take place. It is arranged, according to Irina Dzhigilo, most likely, it will be similar to bank cards denominated in foreign currencies with automatic conversion, which can be used to pay for goods and services..

“To put it simply, regulation will follow the path of clarification, and it will not differ much from the regulation of fiat money,” the expert concluded..

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Opinion 5 – the digital ruble could be a game changer

Another expert who joined the discussion of forecasts for the regulation of the digital asset market in Russia in 2021 was founder and CEO of the Listing.Help project, Sergey Khitrov.

In his opinion, the key moment in 2021 for digital financial assets in Russia will be the test launch of the digital ruble. The expert recalled the words of Anatoly Aksakov, head of the Russian State Duma Committee on the Financial Market, that the government is in constant dialogue with representatives of the crypto community and understands the value of digital assets and blockchain.

It was as part of the development of these initiatives, Sergei Khitrov noted, that it became known about the possible first test launch of the digital ruble on the territory of the Republic of Crimea.

“As for regulatory issues, the main work in 2021 will be carried out around the completion of the Federal Law“ On Digital Financial Assets ”. The main issues will be the legalization of mining, the possibility of making mutual settlements in cryptocurrencies on the territory of the Russian Federation, as well as the correct taxation of these institutions, “the expert noted..

Bitcoin hashrate distribution map. Data: cbeci.org

One of the problems of cryptocurrencies today, in his opinion, is the lack of verified centers where citizens can officially buy, sell, and declare their digital assets..

The expert noted that the discussion of the possibilities of opening such centers was actively going on throughout 2020. Therefore, in his opinion, in the near future, members of the Russian crypto community will be able to see their appearance.

At the same time, Sergey Khitrov noted that when analyzing the situation, one should take into account the position of the Ministry of Finance of the Russian Federation. She, according to the expert, is distinguished by significant caution and rigor on digital financial assets..

“It was the amendments of the Ministry of Finance to the Federal Law“ On CFA ”that provided for criminal liability for undeclared cryptocurrency, a ban on miners from receiving income in cryptocurrency, as well as a significant restriction of possible legal operations with cryptocurrencies, “Sergey Khitrov explained his position.

The entire amount of amendments to Federal Law No. 259, in his opinion, will be considered already in 2021. It was during this period, according to the expert, that the members of the crypto community will see the development of positions on legislative regulation of the Ministry of Finance of the Russian Federation, the Central Bank of the Russian Federation and the relevant committee of the State Duma of the Russian Federation.

The main factor in the regulation of the digital asset market, according to Sergey Khitrov, may be the experience gained during the testing of the digital ruble..

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How cryptocurrency regulation in Russia will change in 2021 - 5 opinions
How cryptocurrency regulation in Russia will change in 2021 - 5 opinions
How cryptocurrency regulation in Russia will change in 2021 - 5 opinions
How cryptocurrency regulation in Russia will change in 2021 - 5 opinions

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