Russian Minister Of Justice Does Not Believe Bitcoin And Crypto Assets Need Legal Definitions Yet

2019-2-15 23:29

Russian Minister Of Justice Does Not Believe That Cryptos Need To Be Legally Defined Just Yet

The current Minister of Justice of Russia, Alexander Konovalov, has affirmed that he does not see the need to legally define cryptocurrencies just yet. According to him, it is too early to formalize crypto legislation in the country.

Konovalov’s reasoning for this opinion is that cryptos are not accepted as a means of payment in the country. He says that the Constitution of Russia and the current legislation for the financial system do not allow cryptos to be used this way. He cited article 75 of the Russian Constitution in order to prove this point.

His main problem is that, if cryptos are not proper money, they are something else entirely, so the regulators have to be very calm now in order to define what kind of asset they want it to be. If they rush in their decision, they might make a mistake and this could cause even more trouble than if they simply take their time to decide the right measures to be taken.

The Ongoing Battle For A Legal Status In Russia

Russia is currently considered a zona full of uncertainty for the crypto market. Why? Mostly because the country is simply unable to decide how to regulate these assets. Last year a bill was passed in order to define digital assets, but all crypto terminology has been replaced so far with “digital rights” and some similar terms, which did not help much.

Any mention to cryptocurrency mining has also been cut from the bill, which basically made it very generic, even considered too generic to be able to solve the problems of the industry in the country.

As many propositions to define cryptos do not go forward in Russia, these affirmations from the Minister of Justice are not good at all. The trouble continues in the country and it does not look like we will see this crisis ending in Russia so soon.

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