The new version of the Russian draft regulatory act on cryptocurrencies does not provide for penalties under the Criminal Code. Today, Tuesday, July 21, there was a second reading on this matter.
According to the official announcement made by the State Duma of the Russian Federation, ie the Russian legislative body, the Duma Financial Market Commission has scheduled a second reading of the draft law on “digital financial assets”, abbreviated as DFA, for July 21.
In the Russian legislative system, the draft of each law is subject to three readings. The first reading consists of presenting the new draft to the current state officials, the second is to take a closer look at the law and make any amendments to it. At the third, last reading, the final decision is made whether or not the bill will be adopted.
Ultimately, the draft did not take into account criminal law
The first reading of the law took place on Monday, and its provisions do not include the imposition of criminal liability, such as fines and imprisonment for “illegal use of cryptocurrencies in Russia.”
Anatoly Aksakov, a member of the State Duma and the person responsible for the bill, confirmed these reports in an interview with the local news agency RIA Novosti. As he added, the DFA act is to be adopted in July and enter into force on January 1, 2021.
Earlier plans for a regulatory law by Russian politicians were not so optimistic. In May this year, they considered introducing penalties for illegal trading in cryptocurrencies in the form of a fine of up to $ 30,000 and, in extreme cases, imprisonment for up to seven years.
The DFA is not the end of regulations in Russia
The DFA is not the only cryptocurrency project in the Russian parliament. There is also a bill called “On Digital Currency”. It is a separate document that will regulate the regulations related to cryptocurrencies in detail, while the DFA contains only basic decisions in this matter.
The State Duma is to pass the bill “On Digital Currency” during the autumn session, which ends at the end of December.
Russia has been delaying the legislative progress on cryptocurrencies since 2018, despite the fact that Russia’s President Vladimir Putin ordered its adoption at least twice. The delays were allegedly due to disagreements over the new asset type between local authorities.