Russia has always been on the fence when it comes to embracing Bitcoin and other cryptocurrencies. In a surprising turn of events, the government will recognize crypto assets as property. This introduces legal rights for all bitcoin holders in the country.
Russia Welcomes Bitcoin After all
For years, there has been a lot of debate regarding Bitcoin’s legal status in Russia. It is a form of money the government and central bank cannot control. As such, it would normally be banned in that country. However, that situation has been left unclear for several years. After a lengthy debate, it now seems some official guidelines will be drafted for Bitcoin after all.
According to Russian Prime Minister Mikhail Mishustin, the plan is to regulate cryptocurrencies. More specifically, this will be done in the same manner as regulating property. Even though Bitcoin and altcoins are very new tools, they warrant a closer look. Rather than opposing growth in the industry, the Russian government will direct the development of this market.
Owners of crypto assets can protect their rights and interests in court, if need be. Additionally, anyone looking to purposefully create a scam or other fraudulent project will have a very hard time doing so. it is plausible to assume that such actions will be met with penalties, fines, and even jail sentences. Before any of this can happen, the Russian tax code will need to be amended.
One lingering question is whether this makes Bitcoin taxable property. Several policymakers have expressed support for such a concept, but it has to be made official. All of these developments are beneficial to the cryptocurrency industry in the region. No longer will there be individual courts rendering their own decisions when it comes to Bitcoin and altcoins.
Entering the era of Modern Money
It is commendable to see Russia take these steps at such a crucial stage. If everything goes according to plan, the regulation of Bitcoin will commence in 2021. The official bill was signed into law in August of this year. However, the version is not yet finalized, as addendums are being proposed around the clock. It may take some time until the full scope of regulation becomes apparent.
By setting this example, the rest of the world is put on notice. Bitcoin and other crypto assets are left unregulated in a lot of countries. This creates unnecessary confusion and hinders overall growth for the industry. Even though a lot of countries focus on CBDCs, the real cryptocurrencies should not be overlooked either.