Russia Plans to Treat Cryptocurrencies as Property

Mikhail Mishustin, the Prime Minister of Russia announced on Thursday that the government plans to recognize digital financial assets as property and the owners of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term will be able to claim and protect their property rights in Russian courts.

According to the official transcript of the meeting held on 26 November, Mishustin mentioned that due to the growing interest in cryptocurrencies, the government is planning to regulate the crypto market in a civilized manner. The PM also outlined a plan to introduce a number of changes in Russia’s tax code to protect crypto holders.

Mishustin has a background in economics, he previously served as Director of the Federal Taxation Service for more than 10 years and assumed the PM office in January 2020. He said that digital financial assets are relatively new in the market and the country needs a strong regulatory framework to protect the rights of crypto owners.

“The interest in cryptocurrencies is constantly growing, and the Government plans to direct the development of this market in a civilized way so that the owners of such assets can protect their rights and interests, and the creation of shadow schemes was difficult,” the official transcript states.

Recognition as Property

Russia is struggling with a clear regulatory framework for cryptocurrencies, despite the approval of the Digital Financial Assets and Digital Currency Act, earlier this year. The country is still not clear about the treatment of crypto assets. Finance Magnates reported earlier this month about a statement issued by the Russian Finance Ministry to take strict actions against under-reporting of digital assets. The country aims to change the uncertain environment regarding cryptocurrencies.

“We will make a number of changes to the Tax Code. Digital financial assets will be recognized as property and their owners will be able to rely on legal protection in the event of any wrongdoing, as well as to defend their property rights in court,” the Russian PM added.