The Presidential Address released by the Kremlin in the last week of February 2019, ordering to pass a regulation related to digitalization of economy.
The head of state, President Putin issued a clause in his address to the Russian legislative body, ordered to pass a new regulation by July 1, 2019. Nevertheless, this is the second time the Russian President has demanded the legislative bodies to define the legality of Bitcoin and other cryptocurrency. The order is specifically for “federal laws aimed at the development of the digital economy.”
This time, the focus is on turning the Russian economy into a digital one, and the order asks for a regulatory framework for digital financial assets, more financial resources based on digital assets and the regulation of civil law digital settlements.
Specifically, the document requires the adoption of federal legislation that aims to develop the digital economy, including regulation of civil-law digital settlements. The law should also include a regulatory framework for digital financial assets, as well as attract more significant financial resources based on digital technologies, the document says.
In Late 2018, Russia changed its stance on Bitcoin and cryptocurrency. The Russian President had earlier expressed concerns of severe financial risk when it comes to Bitcoin and Cryptocurrency. However, later Putin passed instructions on the trade of major cryptocurrencies like Bitcoin and Ethereum. At the time when Bitcoin was legalized, but mining was still being reviewed, deputy finance minister Aleksey Moiseev said:
Furthermore, Ethereum Founder Vitalik Buterin is a Russian-Canadian cryptographer. Hence, the Government had reportedly also invested $100 million in the mining of cryptocurrencies.
Russia’s State Duma (the lower half of its parliamentary body) is finalizing cryptocurrency regulations — while also intending to launch its own cryptocurrency backed by oil. Oleg Nikolayev, member of the State Duma Committee on Economic Policy, confirmed that the regulations will be announced by March. Former Energy Minister Igor Yusufov, expressed doubts regarding the oil-backed currency. Nevertheless, he also established it as the need of the hour.
“There is always resistance. But if you pay attention to him, you will have to mark time. Time is such that we cannot afford it anymore."
Russia has approached cryptocurrency with caution and has always protected the financial interests of their citizens in the face of massive volatility. However, with world-wide developments in US, Japan, Australia and the Arabian Countries it is cue for Russia to adopt a slightly lenient attitude towards Blockchain and Cryptocurrency Adaption.