After a bill establishing a legal framework for cryptocurrencies circulated the Russian Duma, it was quickly shot down by the country’s government although most of its arguments were semantic in nature.
At the end of March, a bill entered the Russian Duma (lower house of the Russian parliament) establishing a legal framework by which cryptocurrency operators would work inside the country. Since then, government reviewers have criticized the measure and returned i,, stating that there are too many problems that should be addressed before passing it into law.
“Article 2 of the draft law defines the concepts of tokens and cryptocurrencies, but it is not possible to distinguish their relationships between themselves from the proposed definitions of these concepts. From the provisions of the bill it is impossible to establish how their primary emission is regulated,” the government wrote.
This was just one of the complaints in a long list of issues the Russian government has with the bill as it stands. Most of the arguments are semantic, but others encompass legal conflicts and confusions that could make the job of law enforcement difficult.
For example, the definition of “mining” did not sit well with the reviewing office since it only addresses the electrical consumption required by mining, but doesn’t address the entrepreneurial nature of the activity. In addition to this, the government’s review considers that the bill doesn’t provide a proper frame of reference for law enforcement in the event that criminal activity occurs in relation to cryptocurrencies.
Though the bill was heavily criticized in terms of content, the government supports its spirit. A revised version is likely to enter the Duma in the near future. The impetus for the bill itself came as a result of an order from Russian President Vladimir Putin back in October 2017 to begin drafting regulations for cryptocurrency circulation and mining.