Russia central bank takes action for long-term digital asset holders.
The Central Bank of Russia is proposing to introduce tax incentives for long-term holders of digital currency assets. The opinion was shared in a consultation document published for public debate on the development of the market for digital assets in the Russian Federation. The Bank of Russia talks about new digital asset market rules and news
The Financial Services Agency of Russia has published a report on the future of Russia’s digital asset sector. The paper examines the development of the digital currency market (DFA) and utility digital rights (UDR), as well as the legal framework that covers aspects of cryptocurrencies and tokens – those with issuing companies, in particular.
The Central Bank of Russia (CBR) believes that additional legislation is needed to improve the DFA system and harmonize it with the laws governing the traditional financial sector. As a manager, this will increase investment, circulation and capital and provide better protection for investors. Taxation is one of the areas examined in the consultation paper. The Bank of Russia proposes to offer tax incentives to investors holding DFA and UDR, proposing to adopt a system similar to the special tax system that applies to deposit account holders individually. The latter was introduced with the aim of attracting private equity in the securities market.
CBR believes that its plan will create new opportunities for Russian citizens and businesses, facilitate transactions in digital assets and digital rights, and reduce labor costs. However, he says that further discussions with government agencies are necessary with marketers before accepting such tax incentives.
Russia central bank is pushing for better identification of investors in digital assets
The Russian central bank also wants to see improvements in the identification process applied to DFA holders. According to RBC Crypto, the financial policy regulator explained that this will allow the country to allow DFAs from abroad to enter its market, following the rules designed specifically for smart contracts and creating important accounting procedures. Among the other proposals of the CBR seeking declaration in the coming months is the idea of facilitating the tokenization of various assets such as land and bonds, precious stones and metals, property rights in the form of unsecured tokens. fungible and acquired debt. through mortgages.
The Bank of Russia also wants the public discussion to cover the list of digital assets and the current changes in the transaction of digital assets through intermediaries. Russia is seeking to expand its regulatory framework for DFAs and the industry debate over the status of intangible assets such as cryptocurrencies has been ongoing for months. Although the central bank called for a ban on insurance and crypto services in January, it later agreed with the Ministry of Finance in Moscow to facilitate cross-border crypto payments. The change in situation comes amid mounting sanctions pressure following Russia’s invasion of Ukraine that began in late February.