Spanish Regulator Open to Approving Funds Investing Directly in Cryptocurrencies

Spanish Regulator Open to Approving Funds Investing Directly in Cryptocurrencies

Spain’s financial regulator has clarified its position on regulated investment funds investing directly in cryptocurrencies. These type of funds are legal under Law 22/2014, and investments can be made through three types of legal entities.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Funds Directly Investing in Cryptocurrencies

Spanish Regulator Open to Approving Funds Investing Directly in CryptocurrenciesSpain’s National Securities Market Commission (CNMV – Comisión Nacional del Mercado de Valores) recently clarified its position on registered funds investing in cryptocurrencies directly. The CNMV is the Spanish government agency responsible for regulating the securities markets.

In a Questions and Answers document addressed to fintech companies on activities and services that can have a relationship with the Commission, one of the questions was “Can a fund registered by the CNMV directly invest in cryptocurrencies?” The Commission replied:

This type of funds would have a legal place in Law 22/2014, which regulates, in addition to venture capital entities, other collective investment entities of closed type and their management entities.

Law 22/2014 establishes, among others, closed-end collective investment entities (EICC), closed-end investment funds (FICC), and closed-end investment companies (SICC), Iclg describes.

EICC, FICC, or SICC

The CNMV explained that the investments could be made through EICC, FICC, or SICC.

Spanish Regulator Open to Approving Funds Investing Directly in Cryptocurrencies
CNMV building.

For EICC, Article 2.1 of the above law mandates that “the divestment policy of its participants or partners” must meet two requirements. Firstly, the fund’s “disinvestments [must] occur simultaneously for all investors or participants,” the Commission detailed. Secondly, “what is received by each investor or participant is based on the rights that correspond to each one of them, according to the established terms in its bylaws or regulations for each class of shares or participations.”

Both FICC and SICC have their own “numerous requirements and conditions,” the CNMV noted. For example, an FICC registered with the Commission must be “managed by a management company of closed-end type collective investment entities (SGEIC) or by a collective investment institution management company (SGIIC) that is authorized to manage this type of funds.” The Commission also noted that “the FICC and the SICC are not subject to the supervision of the CNMV (except [for] self-managed SICC)” based on the provisions of article 85 of Law 22/2014.

While registered funds can theoretically invest in cryptocurrencies directly, the Commission emphasized that there are many factors to consider, reiterating:

The investment of FICC and SICC in cryptocurrencies raises a series of practical problems on how to comply with the regulations regarding the valuation of assets, the management of liquidity and the custody guarantee.

European Regulation

Europa Press reported earlier this month that the CNMV “will apply [its] securities regulations to cryptocurrencies until there is European regulation.” The news outlet quoted CNMV’s general director of Strategic Policy and International Affairs, Víctor Rodríguez, saying:

The approach adopted by the CNMV is to try to apply the existing securities regulations as long as we do not have an international or European reference standard.

What do you think of the CNMV’s approach to cryptocurrencies? Let us know in the comments section below.


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Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash

Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash

Authorities in Poland have realized how inapplicable their decision to tax all crypto transactions really is. A high-ranking official from the Finance Ministry said in an interview that his department “accepts the irrational effect” of the tax it wanted to levy on every purchase and sale of cryptocurrency, regardless of their profitability. Other reports suggest that Warsaw has no intentions to strictly follow the letter of the current tax law before it develops a comprehensive approach towards the crypto sector.

 Also read: The Government Dilemma: How To Tax Something One Pretends Does Not Exist

Temporary Abandonment of Irrational Ideas

The Polish Finance Ministry intends to issue a new regulation to “temporarily abandon” the tax on transactions with virtual currency. It also plans to carry out “in-depth analysis” and prepare “system solutions” to regulate this particular economic space. The move comes after an interpretation of the tax code in April prompted angry reactions from the country’s crypto community, an online petition, and even protests in Warsaw.

“The Ministry of Finance has accepted the irrational effect of the PCC tax on cryptocurrencies,” Deputy Finance Minister Paweł Gruza recently told Business Insider Polska. He was commenting on his department’s decision to impose the Polish “Civil Law Transactions Tax” (PCC in Polish) on all crypto transactions. “So far, the Ministry hasn’t done anything about the PCC, except for recognizing cryptocurrencies as property rights, which automatically means obligation to pay the civil law transactions tax,” he noted.

Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash

Gruza was referring to a controversial decision to tax crypto incomes and profits, which was announced less than a month before the end of the tax campaign in Poland on April 30. In an official position published last month, Ministerstwo Finansów said that Polish residents should report on their tax returns all revenues from trade and exchange for cryptocurrencies like bitcoin, litecoin and ethereum.

The notice reads that crypto incomes and gains are subject to personal income tax in accordance with the current tax legislation. Moreover, the ministry insisted that all purchases and sales of cryptocurrency, considered transfers of property rights, should be taxed regardless of the profit or loss made. The tax rate for these so called “civil law transactions” is only 1%. However, as it does not depend on their profitability, traders could potentially lose all their funds to taxes. A recent update, quoted by the Polish Press Agency, indicates that the ministry has had a second thought on the subject:

Taking into account the specificity of trading in virtual currencies, which boils down to trading these property rights through their purchase, sale and exchange, and therefore entering into multiple sale and exchange contracts, the entity that trades the virtual currency may be required to pay tax in an amount that often exceeds the funds invested.

As a consequence of this realization, plans to tax crypto transactions have been abandoned. The new regulation on the matter is expected by June 15.

Protesters Gather in Front of the Finance Ministry

The initial interpretation of the Polish tax law, which has not been updated to encompass cryptocurrencies, quite expectedly drew negative reactions from the Polish crypto community. Its members immediately organized an online petition blaming the government for effectively restricting access to the growing cryptocurrency market. The tax regime was imposed without any consultations with the affected parties.

There are indications that the strong backlash was the main factor that forced the Finance Ministry to rethink its position. After meeting protesters in front of the ministry last month, Deputy Finance Minister Paweł Gruza announced: “There will be no PCC tax on trading of cryptocurrencies before any final solutions are worked out, which will happen in no less than two years. However, we maintain the obligation to settle the personal income tax, while working on temporary solutions.”

Mr. Gruza also said that “unfortunately” those who had already paid the civil law transactions tax, would not get a refund. “We are working on legislative solutions to solve this problem,” he assured. The official added that a working group has been set up to develop “simple and transparent taxation rules” regarding cryptocurrencies. According to the Polish outlet Kryptowaluti, there is hope that the upcoming legislation will exclude the PCC tax.

Poland Backpedals on “Irrational” Crypto Tax After Strong Backlash

A new law is expected to “rationalize” the income tax regime in Poland, as well, which currently has a progressive scale with two brackets – 18% for annual incomes of up to PLN 85,528 zloty (€20,400), and 32% for those above the limit. The changes should be introduced next year. Some reports suggest that Polish crypto investors may be granted additional tax exemptions in that respect, although there has been no official confirmation of that.

On the contrary, the track record of the Polish government so far proves a rather hostile attitude towards cryptocurrencies like bitcoin. Earlier this year the executive branch of power in Warsaw approved a draft law aimed at bringing cryptos under the traditional anti-money laundering and counter-terrorism financing provisions of the Polish legislation.

Financial authorities in Poland have been accused of spending taxpayers’ money on smear campaigns against decentralized digital currencies in at least two occasions. Recently, the country’s Financial Supervision Authority (KNF) issued a new tender order to plan and conduct a campaign aimed at “building awareness” for the risks of investing in cryptocurrencies, listed alongside pyramid schemes and unsupervised forex activities. Earlier this year, it was revealed that the Central Bank of Poland and the KNF had paid a popular Polish Youtube network to produce anti-crypto videos.

Do you agree that the strong reaction of the Polish crypto community is the main reason for the decision to abandon the tax on crypto transactions? Share your thoughts in the comments section below.


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Canadian Regulator Warns Investors of Five Cryptocurrency Firms

Canadian Regulator Warns Investors of Five Cryptocurrency Firms

The Ontario Securities Commission has issued a warning against five unlicensed crypto companies involved in schemes to encourage investors to trade or invest in cryptocurrencies. The regulator started gathering information about these platforms after receiving complaints about them.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Warning to Investors

The Ontario Securities Commission (OSC) published an Investor Alert on Friday, warning the public of five firms that “appear to be involved in schemes that target Ontario investors and encourage them to trade or invest in cryptocurrencies,” stating:

Btcreal, Bitserial, Hypercube Ventures LP, Cabincoin OÜ, and Baappay Inc. are not registered in Ontario to solicit investments or provide advice on investing in, buying or selling securities.

Canadian Regulator Warns Investors of Five Cryptocurrency FirmsThe Commission started gathering information on several crypto trading platforms last month after it received a number of complaints about them, CBC reported, adding that to date no platform has been recognized by the OSC as an exchange or exempted from recognition. Any platform that offers cryptocurrencies that fit the definition of securities “must determine whether it is a marketplace. Marketplaces are required to comply with the rules governing exchanges or alternative trading systems,” the news outlet elaborated.

Last month, the OSC issued an Investor Alert on Bitconnect, Bitconnect Coin and the BCC Exchange. “Bitconnect, the BCC Exchange and representatives of Bitconnect are not registered in Ontario to solicit investments or provide advice on investing in, buying or selling securities,” the regulator wrote.

The Five Unregistered Firms

Canadian Regulator Warns Investors of Five Cryptocurrency FirmsThe first firm mentioned in Friday’s warning is Btcreal. This company “claims to provide full investment services for cryptocurrency-related investments and forex,” promising investors “high returns in short periods of time,” the OSC described. The company’s website advertises “6 high ROI [Return On Investment] plans.”

Canadian Regulator Warns Investors of Five Cryptocurrency FirmsThe next company is Bitserial which “claims to offer opportunities to invest in BTE Tokens.” The firm also “encourages investors to participate in a lending program where they can exchange bitcoin, litecoin, or ethereum for BTE Tokens that are ‘lent out’ for high returns,” the Commission detailed.

The third company is Hypercube Ventures LP which manages multiple websites to encourage investors to buy “emission pools” in order to generate “VNN cryptocurrency,” according to the Commission.

Canadian Regulator Warns Investors of Five Cryptocurrency FirmsThe fourth is Cabincoin OÜ which “is currently advertising an unregistered token sale for Cabincoin Tokens,” claiming that “the future value of these tokens will far exceed their initial price,” the OSC wrote.

The last on the list is Baappay Inc. which “is a multi-layered platform that integrates both fiat and cryptocurrency payment services for merchants, that will confirm and guarantee all payments in seconds,” its website describes. The OSC says this company “is also currently advertising an unregistered token sale.”

What do you think of the OSC’s warning? Let us know in the comments section below.


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Cryptocurrency is Property in Russia, Justice Minister Confirms

Cryptocurrency is Property in Russia, Justice Minister Confirms

The Russian Ministry of Justice has taken side in what looks like a lively debate about the status of cryptocurrencies that are still unregulated in the country. A bankruptcy case involving a modest amount of bitcoin has sparked discussions in Russian legal circles. Some say a crypto is nothing more than “a set of characters.” Others, including the justice minister, are categorical – cryptocurrency can’t be anything else but property.   

Also read: Cryptocurrencies to be Called “Digital Money” in Russia, Tokens – “Digital Rights”

Russian Justice Ministry Takes Side in a Legal Argument

Cryptocurrency falls under the legal category of “other property,” Russia’s Justice Minister Alexander Konovalov told reporters this week. With two draft laws on the matter still pending in the State Duma, he also noted that digital coins should not be considered electronic money, at least on this stage.

A bankruptcy case involving some bitcoin holdings has recently stirred the Russian legal community, which was challenged to provide a provisional answer to the question about the status of cryptocurrencies. In the absence of firm definitions in the current legislation, this question split Russian legal experts in two camps. On one side are those who think that cryptocurrencies have real value, on the other – their colleagues who believe they don’t, if the law doesn’t explicitly say so.

Cryptocurrency is Property in Russia, Justice Minister ConfirmsAccording to Konovalov, his department has adopted a “consolidated opinion” on the legal nature of cryptocurrencies and it supports the view that they should be defined as property. “If digital money is not property, its theft would not be considered criminal offense because there would be no object of the crime,” he warned.

“If cryptocurrencies are to develop, additional regulation will be necessary. The main point is to ensure that all this does not grow into financial pyramids,” Konovalov added, quoted by Prime. He is convinced that Russia should introduce rigid crypto regulations but also recognizes that the phenomenon is itself a “manifestation of the people’s desire to escape from total dependence.”

The Question Will Be Answered by the Duma Soon

Minister Konovalov’s comments added to the ongoing debate among experts and officials in Moscow on whether cryptocurrency can be considered a property in accordance with the current Russian legislation. The discussions were prompted by a bankruptcy filing from October last year. During the arbitrage proceedings, the debtor protested the trustee’s request to include his crypto funds, less than 0.2 bitcoin (BTC), in his bankruptcy estate.

According to his legal representative, such move is impossible as the term “cryptocurrency” is not mentioned in Russia’s Civil Code at all. The Moscow Arbitration Court accepted this position. “A conclusion can be drawn that cryptocurrency is a certain set of symbols/characters contained in an information system. It cannot be an object of the civil rights,” it said.

Cryptocurrency is Property in Russia, Justice Minister Confirms

But then, earlier in May, an arbitration court of appeals overturned this ruling recognizing cryptocurrency as a valuable property, as news.Bitcoin.com reported. On Thursday, the Ninth Arbitration Court of Appeals published its decision on the case. According to the document quoted by Interfax, cryptocurrency cannot be regarded as anything else but property. And, since the current civil law does not contain the notion “other property”, the widest possible interpretation of property is permissible, the court explained.

The question about the status of cryptocurrencies in the Russian Federation will be answered very soon. Two drafts have been filed in the Duma, the lower house of Russia’s parliament, and the one that focuses on legalizing initial coin offerings will have its first reading on Tuesday, May 22. The second bill is expected to amend the country’s Civil Code in order to regulate crypto payments. According to comments made by the Russian Prime Minister Dmitry Medvedev this week, the new legislation will refer to cryptos and tokens as “digital money” and “digital rights”, respectively. Whether this means that bitcoin will be accepted both as currency and property remains to be seen.

Do you expect Russia to eventually accept and legalize decentralized cryptocurrencies? Share your thoughts on the subject in the comments section below.    


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Coincheck to Delist Privacy Coins Monero, Zcash, and Dash

Japanese cryptocurrency exchange Coincheck has will delist trading pairs for privacy-centric cryptocurrencies monero (XMR), zcash (ZEC), and dash (DASH) next month. The Tokyo-based exchange, which was purchased by brokerage firm Monex following a high-profile January hack that saw the platform lose $530 million in NEM tokens (XEM), announced on Friday that it will no longer

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Kazakhstan President Calls for Global Rules on Cryptocurrencies under UN Oversight

The president of Kazakhstan, Nursultan Nazarbayev, is urging the global community to work together to draft common rules regarding the use of cryptocurrencies. Nazarbayev said the current, disparate regulatory guidelines around the world cause confusion and inefficiency. “It is necessary to start developing common rules,” Nazarbayev said May 17 at the 2018 Global Challenges Summit, as reported by … Continued

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Five Petitions Pile Up Against India’s Crypto Crackdown – High Courts Ordered to Ignore

Five Petitions Pile Up Against India's Crypto Crackdown – High Courts Ordered to Ignore

Five writ petitions have now been filed against the order by the Reserve Bank of India (RBI) banning banks from providing services to entities dealing with cryptocurrencies. The country’s Supreme Court has set a date to hear all petitions but has barred all other courts from accepting any new ones.

Also read: US State Issues Emergency Cease and Desist Orders to Two Crypto Investment Firms

Latest Writ Petition Against RBI Order

Five petitions have been filed with Indian courts against RBI’s order banning financial institutions under its control from dealing with cryptocurrencies and servicing entities that deal with them including crypto exchanges. RBI has set “a three-month deadline or by July 5 for financial institutions to comply with its notice, putting the cryptocurrency businesses in India in a disarray,” the Economic Times elaborated.

Five Petitions Pile Up Against India's Crypto Crackdown – High Courts Ordered to IgnoreThe latest writ petition was filed by the Internet and Mobile Association of India (IAMAI), a non-profit industry body representing the interests of online and mobile value-added services industry. It was filed on Tuesday according to IAMAI president, Subho Ray, and the Supreme Court website, Inc42 reported.

Crypto exchanges that are part of the association include Unocoin, Zebpay, and Coinsecure. They were originally part of another industry body called the Digital and Blockchain Foundation of India which merged with IAMAI, the publication detailed.

Four Other Writ Petitions

The fourth writ petition was “filed by a group of 11 different representatives from various crypto-related businesses,” the Economic Times conveyed on Monday. One of the petitioners told the news outlet:

Banking is an essential service. How can one deny access to an essential service when I am not doing anything illegal? You have not declared VCs (virtual currencies) illegal in the country.

Three more writ petitions were previously filed. One was by Kali Digital Eco-systems and another by Flinstone Technologies Pvt. Ltd, which conducts business under the trade name Money Trade Coin (MTC).

Moreover, a joint writ petition was filed by four cryptocurrency exchanges in the Supreme Court against the RBI circular on May 8. According to lawyer Mohammed Danish, the four exchanges are Coindelta Exchange run by Bitfair Technologies, Koinex Exchange run by Discidium Internet Labs, Throughbit Exchange run by Throughbit technologies, and Coindcx run by Neblio Technologies.

Supreme Court Taking Charge

Five Petitions Pile Up Against India's Crypto Crackdown – High Courts Ordered to IgnoreFollowing the petition by IAMAI, the Supreme Court on Thursday reportedly refused to stay RBI’s order. “However, it allowed cryptocurrency exchanges, their shareholders, traders and other individuals to present their cases within two weeks to the RBI, which will look into the issue in accordance with the law,” the Financial Express explained.

All petitions relating to RBI’s crypto directive will be heard by the Supreme Court; the hearing is set for July 20. Pending petitions have been transferred to the Supreme Court from two high courts – two in Delhi High Court and one in Calcutta High Court.

Furthermore, high courts have been ordered not to entertain any more petitions regarding RBI’s crypto order, Business Standard described, adding:

No court shall accept petitions on the subject of cryptocurrency.

Do you think the Supreme Court will reverse RBI’s order? Let us know in the comments section below.


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India’s Supreme Court Claims All Petitions Against Central Bank Crypto Blockade

The Supreme Court (SC) of India has barred all high courts from filing petitions against the central bank’s (RBI) crypto-curbing circular from April. The court also is clubbing all pending petitions, to be transferred to the SC. As cryptocurrency adopters, exchanges and advocacy groups move various high courts (HC) across the country in filing petitions … Continued

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South Korea to Follow G20 Unified Cryptocurrency Regulations

South Korea to Follow G20 Unified Cryptocurrency Regulations

The South Korean government reportedly plans to soften its crypto regulations in line with the policies set by the G20 nations in an effort to create “unified regulations.” The Korean regulators have also agreed to apply the standards set by the Financial Action Task Force to its crypto policies.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

G20’s Unified Crypto Regulations

South Korea is reportedly planning to follow the policies set by the G-20 nations and soften its crypto regulations, the Korea Times reported.

The G20 is an international forum for the governments and central bank governors. Its members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States, and the European Union.

South Korea to Follow G20 Unified Cryptocurrency Regulations

The top financial policymakers of these countries have agreed to acknowledge and regulate cryptocurrencies as financial assets, the news outlet noted, elaborating:

Financial policymakers of G-20 nations have set a July deadline for the first step toward ‘unified regulations’ of cryptocurrencies. One reason for the move by the G-20 is that they see cryptocurrencies as ‘too small to jeopardize’ financial markets. The combined market value of cryptocurrencies is less than 1 percent of the global GDP.

Financial Action Task Force Standards

While the G-20 classifies cryptocurrencies as financial assets, the Korean government has earlier classified them as non-financial products due to their speculative nature. Acknowledging the differences, the country’s Financial Supervisory Service (FSS) was quoted expressing:

It’s almost certain that cryptocurrencies will be classified as assets and the main issue will be centered on how to regulate them properly under the unified frame that will be agreed upon between G-20 nations. Given the current stance, this isn’t good, but we will step up efforts to improve things.

South Korea has also agreed to apply to cryptocurrencies the standards of the Financial Action Task Force (FATF), an inter-governmental body formed to fight money laundering and terrorism financing, the publication conveyed.

Softening Crypto Policies

Recently, the new FSS chief indicated that he will ease the country’s cryptocurrency regulations. Governor Yoon Suk-heun said there are many positive aspects of cryptocurrencies, promising to release updates on this issue in the near future.

South Korea to Follow G20 Unified Cryptocurrency RegulationsMeanwhile, the country’s National Tax Agency has been collaborating with the finance ministry to collect tax data in order to establish crypto tax policies. While cryptocurrency transactions are currently tax-free in Korea, crypto operators are required to pay income taxes, the news outlet detailed.

Despite the new FSS chief suggesting an easing of crypto regulations, his department has launched an investigation into crypto exchanges, in collaboration with other related authorities. In March, the prosecution arrested four employees of crypto exchanges including the CEO of Coinnest. Last week, they started investigating the country’s largest crypto exchange, Upbit. This week, three people were arrested from HTS Coin exchange for alleged fraud and embezzlement charges.

Do you think South Korea will soon ease crypto policies? Let us know in the comments section below.


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Cryptocurrencies to be Called “Digital Money” in Russia, Tokens – “Digital Rights”

Cryptocurrencies to be Called “Digital Money” in Russia, Tokens – “Digital Rights”

Russia’s Prime Minister Dmitry Medvedev has shed some light on the progress authorities are making towards adopting the long-awaited crypto regulations. Legislators will replace common words like “cryptocurrencies” and “tokens” with legal terms such as “digital money” and “digital rights”, he revealed. Two draft laws have been filed in the Duma. One of the bills is scheduled for first reading next week.

Also read: EU Adopts Rules to Reduce Anonymity for Crypto Users

Replacing “Slang” with “Strict Legal Concepts”

Cryptocurrencies to be Called “Digital Money” in Russia, Tokens – “Digital Rights”The work on the Russian crypto regulations has been going on for some time, with unresolved questions and disagreements between institutions postponing their adoption. Two pieces of legislation have been filed in the State Duma, the lower house of Russia’s parliament – a bill defining crypto activities like initial coin offerings and mining, and a draft law amending the Russian civil code to regulate crypto transactions. According to Parlamentskaya Gazeta, the law legalizing token sales has been approved by the Financial Market Committee and will hit the House floor on May 22.

Words like “cryptocurrency” and its derivatives have gained popularity beyond crypto communities, yet authorities around the world tend to avoid them. Russian officials are no exception. According to comments made by Prime Minister Dmitry Medvedev, the new Russian legislation on “digital financial assets” will not use the colloquial terms either, RIA Novosti and RBC reported. In a speech during the plenary session of the St. Petersburg International Legal Forum he said:

We need to consolidate the basic provisions and translate them into the language of the law. Therefore, instead of common slang expressions such as “cryptocurrencies” and “tokens”, lawmakers are developing the more strict legal concepts of “digital money” and “digital rights.”

Regulating Everything Is Counterproductive

We need to consolidate the basic provisions and translate them into the language of the law. Therefore, instead of common slang expressions such as “cryptocurrencies” and “tokens”, lawmakers are developing the more strict legal concepts of “digital money” and “digital rights.”Medvedev emphasized that the ruble is and will remain in the future “the only legal means of payment” in Russia but admitted that “deals in the digital environment are a reality we can no longer ignore.” He added that the new regulations would help to ensure judicial protection against abuse, prevent the transfer of assets into an uncontrolled digital environment, and develop a basis for taxation.

The head of the Russian government noted, however, that attempts to regulate everything are not effective in the digital world and authorities need а flexible legal regulation in this sector that does not hamper its development. “Prohibitions in the digital environment do not work because one can immediately find ways to circumvent them,” Dmitry Medvedev explained, quoted by ITAR-TASS. “It is quite difficult to enforce a ban,” he noted.

“Attempts to regulate everything in the digital world be absolutely counterproductive and unrealistic. It is changing very quickly and we need to have flexible legislation that sets some basic terms without interfering with the development of the digital space. Finding this balance is probably the most difficult task,” the Russian Prime Minister admitted.

Regulator Wants to Identify Users of Crypto ATMs

While the fine tuning of the upcoming legislation continues in the Duma, other institutions are trying to push forward their own ideas for the new regulatory framework. Russia’s federal financial regulator, Rosfinmonitoring, has recently insisted on introducing mandatory identification for persons using the services of crypto exchange bureaus and Bitcoin ATMs.

We need to consolidate the basic provisions and translate them into the language of the law. Therefore, instead of common slang expressions such as “cryptocurrencies” and “tokens”, lawmakers are developing the more strict legal concepts of “digital money” and “digital rights.”According to the Deputy-Director of the agency, Vladimir Glotov, the identity verification procedure for buyers and sellers of cryptocurrency should copy the identification process for traders of foreign currency. “This is, in fact, our job – we must see the person, look at his transactions and try to understand if they are related to money laundering or tourism financing,” Glotov said.

The deputy head of Rosfinmonitoring added that in the case of cryptocurrencies, the vigilance of the regulatory bodies is especially important as digital coins provide anonymity. “That’s why we are very cautiously and we take part in all discussions,” Glotov told Prime.

The official said he was also positive towards another initiative to expand the scope of the regulations. The Russian Association of Cryptocurrencies and Blockchain (RACIB) has recently proposed the creation of a special register of crypto investors and the assignment of Taxpayer Identification Numbers to all cryptocurrency traders in the country.

Why do you think officials prefer to use different terms when referring to cryptocurrencies? Tell us in the comments section below.


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Bitfinex Forces Users to Submit Tax Information, May Share with Government

Major cryptocurrency exchange Bitfinex has recently notified some of its users that they are required to submit their tax information so the company can then send it over to the British Virgin Island’s (BVI) government, which “may” exchange the info with the tax authorities of its users’ country of residence. The exchange’s message reads: “The … Continued

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Ukraine Drafts Law to Legalize Cryptocurrencies, Fuels Debate In Crypto Community

Ukraine is drafting legislation to legalize cryptocurrencies and asked members of the crypto community to participate. And boy, did they. Alexei Mushak, a member of the Ukrainian parliament, posted a notice on his Facebook page May 15. He said the Ukrainian government is preparing to legalize virtual currencies and asked for input from cryptocurrency experts. “Below … Continued

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Texas Shuts Down ICO that Used Fake Jennifer Aniston Endorsement

The Texas State Securities Board has shut down an initial coin offering (ICO) that it claims used fake endorsements from Jennifer Aniston and other celebrities to fraudulently promote its token sale. Filed on Wednesday, the emergency cease-and-desist order alleges that — in addition to illegally peddling unregistered securities — Wind Wide Coin used photographs of … Continued

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Putin’s Orders: Russia’s ‘Digital Law’ Bill Won’t Legalize Crypto Payments

Russia’s State Duma Committee on State Construction was scheduled to hold the first reading of amendments to the country’s civil code pertaining to digital currency today, but is not expected to make digital currency a legitimate method of payment, according to Izvestia, the news portal of the Ministry of Information Technologies. The bill, which the … Continued

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