The head of Binance gave recommendations on the regulation of the crypto-industry in Russia

In an interview with RIA Novosti, the head and founder of the world's largest cryptographic Binance Changpeng Zhao said that the key to the development of the cryptocurrency market, the blockchain and ICO in Russia would be, among other things, a clear definition of terms and a sound tax policy.

As is known, the legal status of smart contracts, cryptocurrency, ICO, mining and crowdfunding in Russia is not yet available. In March 2018, the State Duma introduced and, in May , three draft laws were adopted on first reading to eliminate this gap and create legislation in the field of the digital economy.

In particular, a bill was passed that proposed to introduce the concept of “digital law”, “digital money” and other definitions in the field of the digital economy into the Civil Code of the Russian Federation.

According to the head of Binance, in regulation they often try to use old concepts to classify new phenomena, but this approach is not suitable for the cryptocurrency industry.

Changphen Zhao said :

“For regulators, I have four tips. One of the key points is the definition of cryptocurrency as a new asset class. Do not use the old classification. After all, a cryptocurrency is significantly different from a product, a security, or even a traditional currency. I firmly believe that cryptocurrency is a separate and own class of assets. It is not issued by the central bank, but can act as money and much more. We have to admit that this is a new tool and it needs its own class. ”

In addition, Zhao added, the authorities should establish conditions for raising funds using cryptocurrency, as well as requirements for disclosure by project teams and appropriate restrictions.

It is also necessary to develop rules for the operation of cryptocurrency exchanges , for example, the recommended procedures for verifying the identity of the client and the fight against money laundering, and to determine the tax policy regarding cryptocurrency.

According to him, in the long term, the cryptocurrency market, as well as the blockchain technology , will remain in demand.

Changphen Zhao summarized :

“The cryptocurrency industry will become much more than today. We are still at the very beginning of the industry. Much remains to be built, and many entrepreneurs are working hard on this. I know that the industry will grow many times in the future. I see a world with thousands of blockchains and millions of tokens. Everything can and will be tokenized . ”

Publication date 04/05/2019
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