A large number of people are concerned about the question of whether there is criminal liability for the use of bitcoins or other cryptocurrencies? Indeed, according to the laws of most countries of the world, illegal circulation of banknotes is prohibited and may entail criminal and administrative liability.
We can immediately say that the use of cryptocurrencies for a long time was not illegal because they are not money, but a property asset that has some value. There are already precedents in Russian legal proceedings in which the status of cryptocurrencies was determined in this way. Determination of the status of cryptocurrency assets was needed in the course of resolving a dispute that arose during the court proceedings when considering the bankruptcy procedure.
The Moscow Arbitration Court took into account not only the defendant’s salary, but also the bitcoins he had stored on the Blockchain.info cryptocurrency wallet. The court’s decision was motivated by the fact that in the Russian Federation there is no final list of objects of civil rights. According to the Civil Code, this list includes, among other things, other property. There is no exhaustive definition of this concept in laws and regulatory documents, therefore, according to the court, it is necessary to take into account modern realities, as well as the development of technologies that allow interpreting this concept in a broad sense. Based on this, the cryptocurrency was included in the list of other property by a court order.
The discussion of the legal status of cryptocurrency on the territory of the Russian Federation has been going on for five years. During this time, State Duma deputies and officials have come up with various, often diametrically opposed legislative initiatives. What they didn’t offer. For instance:
Let’s take a closer look at the questions about whether it is legal to mine bitcoins and other cryptocurrencies in Russia, and about the consequences of the ban on cryptocurrencies in the Russian Federation.
There is currently no criminal liability for mining. The legal framework still lacks the very definition of this concept, which leads to its various, sometimes extravagant, interpretations by law enforcement agencies, “who want to fine craftsmen who produce money from the ether, or ether from the money invested in equipment.”
If you rely on the already existing precedents for the recognition of cryptocurrencies as property, then the accusations of illegal production of funds are groundless. It is necessary to understand that, if necessary, legal acts prohibiting the laundering of proceeds from crime, as well as articles related to the financing of terrorism, can be applied against the owner of cryptocurrencies. Statements on the introduction of criminal liability for the shadow circulation of cryptocurrencies and that mining in Russia will be prohibited.
In the summer of 2020, the Duma adopted the law “On digital financial assets”, which clearly defined the place of cryptocurrency in the life of Russian society. In fact, the trading turnover of any crypto coins from January 1, 2021 is prohibited. Although back in the spring it seemed that the authorities were leaning in a completely different direction and were ready, following the example of Belarus and Ukraine, to legalize the production and distribution of digital assets. But alas, it turned out quite the opposite. I must say that in China, in preparation for the transition to the crypto-yuan, they did about the same.
Perhaps the cryptocurrency is not a utopia at all. Indeed, back in 2016, Deputy Director of Rosfinmonitoring Pavel Livadny in one of his interviews announced an active discussion of the idea of launching a national cryptocurrency in the ruling circles of the Russian Federation. Other high-ranking officials, for example, the Minister of Communications and Mass Media of the Russian Federation Nikolai Nikiforov, later spoke in approximately the same spirit. But the matter did not progress beyond discussion.
But the Investigative Committee has long been ready to introduce criminal liability for the possession and use of cryptocurrency. Well, what, for example, in Bolivia, Bangladesh or Kyrgyzstan, the authorities have long banned bitcoins and other virtual money.
Of course, there were also more moderate and realistic opinions. It was proposed, following the example of most European countries, to equate cryptocurrencies with digital shares and tax them. Despite the differences, the opponents of the cryptocurrency and the centrists agreed on one thing, the tokens of blockchain projects cannot be equated with money. And it seems that in 2018 they finally decided to recognize the crypto as an electronic type of personal property, and classify its mining as the issue of digital tokens to attract investment in capital. But, this approach did not solve the problem as a whole.
The year 2020 has come, and in May, an updated draft law “On digital financial assets” appeared. It was proposed to prohibit the trade and release of any foreign crypto-coins on the territory of Russia, and violators faced not only administrative, but also criminal liability.
On July 22, 2020, State Duma deputies adopted the CFA law in the third reading, and the next day it was signed by Russian President Vladimir Putin. True, a number of related documents regulating the circulation of cryptocurrencies were sent back for revision.
Analytical review of experts from the Moscow Digital School community – https://mosdigitals.ru/wp-content/uploads/2020/09/Analiticheskii-obzor-zakona-o-TSFA.pdf
What happened as a result. And is it now possible to buy and sell cryptocurrency. The new law states:
As for the exchange of virtual assets, then the deputies did not immediately come to an agreement. But already in the fall, a bill appeared requiring citizens of the Russian Federation to report to the fiscal service if the annual turnover of funds through an electronic wallet exceeds 600,000 rubles. In principle, it is even easier for large investors, now they will be able to legalize their investments.
Issuance of foreign cryptocurrency on the territory of Russia is prohibited. Of course, issuing tokens of a new blockchain project and performing cryptographic computations are different things. But by and large, receiving a mining reward can be equated with participating in the release of coins. But in the law “On CFA” there is not a word about mining.
In developed countries, such laws have long existed, for example, France adopted such a law back in 2014. The law regulates the procedure for conducting an ICO and has the following features:
Russian Association of Cryptoindustry and Blockchain (RAKIB, website https://racib.com), founded in 2017, is the most important community of enthusiasts promoting innovative blockchain technologies, cryptocurrencies and ICOs.
According to the latest initiatives of RACIB, together with the CryptoUniverse company, it is planned to create a joint Russian mining pool, which will provide miners with the status of self-employed persons and make it possible to mine bitcoins and other cryptocurrencies legally.
The community proposes to introduce a simplified taxation algorithm for cryptocurrency mining in Russia in the amount of 3-5% of the amount received when exchanging the received cryptocurrency into rubles. This will allow more than 350 thousand people to enter the legal field, increase the level of security when working with cryptocurrencies and bring additional funds to the state budget of Russia due to taxation of cryptocurrency mining.
In addition, RACIB is preparing an initiative for certification of miners, which will increase the safety of this activity by issuing appropriate licenses, compliance with the standards for the compliance of mining facilities with electrical and fire safety requirements.
A positive legislative answer to the question of whether it is possible to mine in Russia contributes to Russia’s exit from the gray zone, in which there is no legal regulation of the cryptocurrency market. The legalization of mining in Russia will bring the country to a new, more progressive level, and will also give an impetus for a more dynamic development of innovative projects. The introduction of cryptocurrencies and mining into the legal framework will provide a higher level of security for such activities and should contribute to the development of many related industries, including:
Well, what do we have as a result? The people say: “The law is like a drawbar, where it turned, it went there.” On the one hand, all popular cryptocurrencies have appeared abroad and are subject to mandatory declaration. But, on the other hand, the question arises: “Is it possible to call a decentralized blockchain ecosystem a foreign provider of payment services?”
The Commission on Blockchain Technologies and Cryptoeconomics, which includes representatives of large companies (VEROS FP, Binance, EXMO, CoinBene Russia, OKEx, Bingbon, Colibri Group), the public organization Roskomsvoboda and the expert council on the digital economy and blockchain technologies under The State Duma Committee recommended to revise the Criminal and Criminal Procedure Codes of Russia concerning the regulation of the turnover and taxation of cryptocurrencies. It is proposed to reduce the amount of fines and abolish criminal prosecution, otherwise many businessmen working in the cryptoindustry will leave Russia.
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