- The central bank of Russia has recommended a comprehensive framework to trade digital assets.
- There’s also the mention of regulating smart contracts.
- The findings are published in a report released on November 7 and can be commented upon until December 7.
In a new consultative report, Russia’s chief financial regulator said that the country might establish even more elaborated rules for taxing utility tokens and digital securities though it so far has enough regulatory environment for the establishment of a lawful digital assets market.
According to the report, just like traditional securities, digital assets may also be regulated in matters where they possess similar properties. The report further mentioned that if the fundamental technology enables the management of risks associated with consumers, it is possible to create a new regulatory approach which will be different from the approach that’s currently applicable for the securities market. Matters associated with the digital assets issued in Russia based on the 2020 law about digital assets cover the major part of the document.
As per the document, more elaborated rules to acknowledge the taxation of utility tokens and digital securities must be developed besides a lawful framework to tokenize debt, securities and valuable stones & metals as well as issuing of NFTs that validate property rights.
Another recommendation by the bank of Russia is to keep the trading of digital assets in the traditional stock market infrastructure. The rules to access the digital assets market need to be harmonized with those for the traditional securities markets. This will allow the ineligible investors to access both markets within the limit of 100,000 rubles per year or more, provided they complete a test on financial literacy.
The regulator has also demanded a framework to enable digital assets that are issued abroad to the Russian market; however, just those that follow the quality needs. For instance, having an issue and being backed by something.
The bank of Russia is hoping for comments for the report by December 7 this year.