Digital Assets Law
Considering another rise in the rate of the most famous cryptocurrency - bitcoin, we suggest to consider the Russian legislation of 2021 on digital financial assets and digital currency and try to find out how to invest without breaking the law.
At the beginning of the year, Law No. 259-FZ entered into force, which defines new concepts: “digital financial assets (DFA)” and “digital currency”. The new law also regulates transactions with DFA, allows the use of currency as collateral, but at the same time prohibits the use of digital currency as a means of payment for goods, works and services.
If, in relation to digital assets, the law establishes the rules for issuing, accounting and circulation, the requirements for operators of information systems in which digital assets are issued, the procedure for their activities, then in relation to digital currency (read - cryptocurrency) the law does not provide any additional conditions for its acquisition. There is a gap in legislation here, which, we believe, will be resolved in future innovations.
What is known at the moment?
- cryptocurrency is defined as digital code that is used as a means of payment and savings, as well as an investment equated to property under Russian law.
- the owners of digital financial assets and digital currency are provided with judicial protection, but only if the owner has informed the tax authorities about the fact of their acquisition and transactions with them
- crediting of funds from the sale of cryptocurrencies to Russian banks is still questionable. The transaction can be blocked and the account frozen.
- new rules legalize cryptocurrency, but prohibit its use in Russia to pay for goods, works and services.
What can be expected?
- Tax Code amendments regarding:
● taxation of digital currency.
● mandatory notification of tax authorities about transactions exceeding 600 thousand rubles.
● introduction of penalties for delay in providing information on transactions - in amount of 10% of the amount, for tax evasion - in the amount of 40%.
● entrusting the Federal Tax Service with powers to determine the market price for digital currency
- Criminal Code amendments regarding:
- introduction of liability for tax evasion on a large or especially large scale.
- introduction of liability for failure to provide tax authorities with information on ownership of digital assets and currency.
- introduction of liability in the form of confiscation of digital currency obtained as a result of criminal activity.
Thus, we see how digital assets and currencies enter the legal field, however, the process is slower than the development of the world market in this area.
If you are planning or are already engaged in investing and want to reduce the risks of your activities, then immediately contact TEAM for expert advice on this matter!