Russian banks have found a way to legalize cryptocurrencies . The Association of Banks of Russia (ADB) has prepared a report entitled “The Concept of Decentralized Cryptocurrency Turnover,” which is planned to be discussed at the organization’s site in early October. The document contains proposals on the legalization of digital assets in Russia using foreign experience. This is reported by Izvestia.
In Russian legal practice, such a norm can be fixed within the framework of the concept of “newly created” (includes property independently produced by a citizen, for example, fruits, products, etc.). In this case, cryptocurrencies can be considered a thing and taxed, like barter transactions.
ADB refers to Austrian law, which states that "a person who acquires virtual assets as a result of mining occupies them, that is, seizes them, and becomes their first legal owner." However, mining can be identified with the search for treasure.
“Using legal fiction, it could be argued that the first owner of the crypto assets“ found them ”, since receiving from an anonymous system can be conditionally considered a find,” the report said.
In addition, as explained by Anatoly Kozlachkov, ADB Vice President, cryptocurrency arises as a result of mining, that is, the activity of the person who creates it himself. Thus, in Russian law, cryptocurrency falls into the category of “newly created,” according to the association of banks.
“There will be reasons to consider cryptocurrency a thing – adjusted for its digital nature ,” Kozlachkov emphasized.
In his opinion, in this case "it can be used in barter transactions, taxed, as provided in the relevant section of the tax code."
At the same time, the ADB vice president added, it will be possible to avoid the recognition of cryptocurrency as a means of payment and money substitute.
ADB also believes that cryptocurrency transactions should be taxed on profits as exchange transactions. Access to this market will be regulated by analogy with the securities market. The purchase of cryptocurrencies will have to be declared, and digital wallets – deanonymized. At the same time, the authors of the concept note that virtual money should be in free circulation and exchange for goods, currency and tokens.
Publication date 09/27/2019
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