Russia one step closer to digitalising financial assets
It appears that the Russian State Duma are one step closer to digitalising financial assets, following an update to the latest edition of their cryptocurrency regulation draft bill, “On Digital Technologies.”
First reported by the Russian business outlet, Vedomosti, the Russian State Duma have included legislation to the draft bill that will potentially allow privately held businesses and legal entities to “digitise” their shares and store them on blockchain.
This latest amendment provides more definitional clarity following the omission of the term ‘cryptocurrency’ from the previous draft bill back in October 19, being instead replaced with ‘digital financial asset’, or ‘DFA’.
DFA’s will act as a digital form of equity which can be created and sold by privately held companies, and whose data can be cross checked by the Russian Central Bank. It is important to note, however, that the draft bill requires approval at all three readings by the State Duma (with the second hearing expected to continue until December), and given how the draft bill was originally expected to be passed by July 1, 2018, it appears that there may be a little more waiting time before the bill can finally be passed.
Still, this latest announcement can be seen as a major step towards the recognition of blockchain as a useful financial tool by the Russian Federation, who will also examine the possibility of including the definition of a DFA within Russian civil law so that in the event of any token issuance violation, any matter of this nature can be taken to court by investors.
An ongoing proceeding definitely worth keeping an eye on.