The Russian Parliament has reportedly obeyed orders sent by President Vladimir Putin last week to provide regulations for the cryptocurrency industry.
According to a release on March 5, the Russian State Duma has finally approved the bill “on Digital Financial Assets” which have been under its review for nearly a year. The bill though does not prescribe an entirely new framework but ensures the amendment of the existing Civil Code on the Russian Federation on digital rights.
As expected, the amendment legalizes the use of cryptocurrencies in Russia and also validates the concept of smart contracts which is a vital component of the blockchain system. It specially defined these contracts as a blockchain-based system which “may provide for the fulfilment by its parties of obligations upon the occurrence of certain circumstances.”
Following the passage of the regulatory bill, State Duma Chairman, Vyacheslav Volodin highlighted what the new rules would bring to the country’s digital economy. He said,
After the adoption of the law, citizens and legal entities will receive additional guarantees, allowing them to participate more actively in the development of the economy of the future. ”
Volodin further added that the parliament would not bow out of the task of regulating the cryptocurrency industry with just a few amendments. Instead, he stated that the legislative body would “in the spring session, ensure the adoption of a whole block of draft laws for the industry.”
In February, Stmarket.co first reported the possible enactment of crypto laws in Russia with a top official of State Duma, Oleg Nikolaev, confirming then that the regulations would go live in March.
The lawmakers have now met that deadline, thus, adding the latest milestone as the second major set of crypto law in Russia. In the first instance, the Russian Supreme Court approved the classification of crypto-related theft as a criminal offence.
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