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The Cryptocurrency Bill has gone through the first reading in Russian Parliament

May 29, 2018

On Thursday, 22 May, a so-called Digital Rights Bill (or simply the Cryptocurrency Bill) was adopted on first reading by State Duma. The document is aimed at regulating the cryptocurrency exchange, tokens' sales, and smart contracts implementation. Find out more in Simex review

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Token sales are now protected by law

It is proposed to replace the commonly used term “token” with the term "digital right", which, according to legislators' point of view, is more in line with a Russian legal tradition.

Transactions with tokens would be governed by the rules of civil law. This proposal is significant for both investors and entrepreneurs from a safety perspective, as far as it reinforces the integrity of the process.

Russian Cryptocurrency Law defines a role of Digital Rights in the modern economy: tokens are used to reaffirm the right to own assets through a digital code. Having access to the digital code allows managing these assets. In simple words, the Bill explains how tokens work and recognizes them as a tradeable commodity. Transactions with tokens would be governed by the rules of civil law. This proposal is significant for both investors and entrepreneurs from a safety perspective, as far as it reinforces the integrity of the process.

Cryptocurrencies and smart contracts

“Digital Money” is cryptocurrency in legal terms. The legislator mostly perceives cryptocurrencies as a means of payment: cryptocurrencies "do not represent the right to own the objects of civil rights, but rather used as a means of payment". The rules give a green light to cryptocurrency exchange but stipulates that accepting crypto assets in Russian Federation would be possible, but not necessary.

Smart contracts will be legally equal to written deals.

The draft law creates the legislative framework for smart contracts. Lawmakers want to make contracting clear and credible: pressing OK button to start a smart contract transaction, will be equated with a written deal signature. Relevant articles of Russian Civil Law will be amended as to make smart contracts legally recognizable.

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The text of the Digital Rights Bill is available on the State Duma's website (Russian language version). The lawmakers followed the instructions given by President Vladimir Putin in October 2017. The President requested the Government and the Central Bank of Russia to prepare certain regulations of the digital assets market by July 2018.

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