Understanding the Draft Bill
The long wait is over! Russia’s draft bill regarding cryptocurrency and blockchain regulation is here, trying to poke fun at the traditional financial system with its latest proposal. According to reports by local media, the bill, known as ‘On Digital Financial Assets,’ will let privately held businesses and legal entities go all digital and turn their shares into shiny tokens on the blockchain.
What Are Digital Financial Assets (DFAs)?
So, what exactly are these DFAs? Think of them as digital equity – a modern twist on your good ol’ shares. They will be securely verified by the Russian Central Bank and stored on the blockchain. Essentially, DFAs are similar to crypto tokens, but we’ll give them a fancy Russian name!
Legal Framework for DFAs
What’s cool is that the definition of a DFA will be entrenched in Russian civil law, allowing investors to go full-on lawyer if anything goes wrong. If token issuance rules are violated, investors now have the power to seek court intervention—a little insurance for those putting their faith (and funds) into the digital world.
The Impact on Businesses
Now here’s where it gets juicy! Should this draft pass through all its bureaucratic hoops, it’s essentially a green light for all limited liability companies and non-public joint stock companies to hop on the digital bandwagon. But hold your horses! Once a company decides to issue DFAs, the option to go public in the traditional sense is off the table. It’s like being told you can only have pizza for dinner when you secretly just wanted tacos.
History of the Bill’s Journey
This draft bill didn’t just pop up overnight; it has a backstory! It was first introduced by the Ministry of Finance way back in January 2018, with an expectation of a swift approval by July. Fast forward to March, minor tweaks were made introducing know your customer (KYC) regulations. The drama unfolded when the second hearing was pushed to the autumn session, which ends this December—stay tuned!
Experts Weigh In
The draft has not been without its critics. Experts have voiced their concerns about the bill being “unfinished and fragmented.” Enter the Russian Union of Industrialists and Entrepreneurs (RSPP) with a lobby group aiming to craft their own version of the bill, led by Elina Sidorenko, a vice-president who wants to tidy up any messy contradictions in the proposal.
Conclusion: Is It Worth the Hype?
In short, Russia’s significant step into the world of DFAs is like stepping onto a rollercoaster of digital innovation. Will it smooth out the bumps of regulation or will it send investors screaming? Only time will tell!
