Russia to take crypto currencies under control

The State Duma of the Russian Federation may pass a law on the regulation of crypto currencies this autumn. In the near future, a special meeting dedicated to the issue of crypto-currencies will be held with the participation of representatives of the Central Bank, the Ministry of Finance, and the expert community to elaborate basic principles for the regulation of the market of crypto currencies. The workgroup at the State Duma will discuss the definition of crypto currency as a financial instrument.

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Pravda.Ru requested an expert opinion on the subject from chairman of the committee for the financial market of the State Duma, Anatoly Aksakov.

"What do MPs have to deal with in the first place in terms of legislative regulation of crypto currencies?"

"The goal is to define the concept of what the crypto currency is and whether the crypto currency is a financial instrument. This is important because it may have different tax consequences, as transactions with financial instruments are exempt from VAT. If this is a different kind of product, then a value-added tax may arise.

"Next, one needs to install a regulator that should manage this market and regulate the rules of work. In addition, it is necessary to determine who can work with this currency and on what platform it should be happening. Should we bring crypto currency to exchange trade or should it be free market trade?"

"Who, in your opinion, can have the authority to conduct transactions with crypto-currencies? Should it be professional participants who understand this tool?"

"In my opinion, it is qualified participants who should have an opportunity to trade or purchase this tool. There is a danger of financial pyramids, the emergence of dishonest participants who will make big promises to deceive others. All these things, in my opinion, must be regulated legislatively. We will discuss all possible approaches and see how it works in international practice."

"In Russia, an association for crypto currency holders will appear. What tasks should the new structure solve?"

"I do not think this is necessary. We have Fintech association that deals with financial technologies. As long as the market of crypto currencies has not been formed yet, the creation of a relative association will be a reductive tool in this sphere. One needs to create a market first before we can talk about associations."

Interviewed by Lada Korotun

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Author`s name Dmitry Sudakov