Different countries are, in different ways, trying to come up with the kind of legislation that can fit virtual currency in the economic system. However, only a few have been successful in incorporating it in a manner so as to see to it that the economy is not negatively influenced due to the field of virtual currency. There have been a lot of discussions regarding the bill proposed by Russia, this bill was expected to be passed in the month of July, however, lately, it is being said that it would be passed in the month of October, that is, the October Duma session.
Artem Tolkachev who has been working with Blockchain technology startups and Bitcoin has stated that a significant reason for the decision regarding virtual currency not making it to the “To-Do-List” in July was that the subject is considerably complex and that there is a lack of unity amongst the various lawmakers as to in what way they should go about dealing with the subject of virtual currency. A major dilemma that has arisen regarding the sector of virtual currency is that there are two conflicting points of view that have to be dealt with in Russia regarding virtual currency. While the Central bank of Russia has a conservative approach towards the economy, the ministry of economic development has manifested a readiness to embrace this new sector. Tolkachev has been an integral observer of the manner in which virtual currency has entered the Russian system and the manner in which it has affected the later. He is the acting chairman of the Blockchain society in Russia and has stated that the legislation that took place did so in three drafts, however, it has failed to satisfy the expectations of the various experts in the field. Tolkachev has also gone onto say that for the longest period of time, he had pitched the idea of Russia providing the kind of environment that can facilitate the business in the sector of virtual currency, he had tried to demonstrate to the authorities that Russia can provide a conducive environment for the operations of virtual currency, however, the drafts that were passed have disappointed him. Several other experts have also stated that the bill passed by Russia regarding virtual currency is not at par with several countries dealing with the sector, for example, Singapore. And therefore, there needs to be a change in its legislation regarding digital currency.
Tolkachev, talking about virtual currencies, has stated that according to the laws drafted, only tokens based on the assets will be allowed within the country and not other virtual currencies. Thus, not much can be left to explore in the sector of virtual currency. Another major reason for the aversion of the central bank of Russia to virtual currency has been that it would be used without proper consideration, as well as, an apprehension that there would be entities getting involved in the illegal activities.
The draft that was presented recently, did not render the status of “means of payment” to virtual currencies but limited it to “digital assets”. It has also been noticed that the bill that was passed in January differs a great deal from that passed in the month of March, however, neither of them has lived up to the expectation of the experts in the field. Right now, there can be believed that there is a lack of clarity regarding the stance about the initial Coin Offerings.
Even the bill recently out forward has been accepted, it can be believed that it fails to provide the legitimacy that is expected from it. Moreover, even as these drawbacks do not hinder the ambitions of Russia, they also see to it tat Russia is not at par with other countries dealing in the sector of virtual currency.