Alternative Bill on Digital Assets Presented by Lobby Groups in Russia and Ukraine

The Russian Union of Industrialists and Entrepreneurs (RSPP), a lobby group tasked with protecting the domestic industry and business transformation in politics, has presented an alternative bill on cryptocurrency regulation in the country.

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The Russian Union of Industrialists and Entrepreneurs (RSPP), a lobby group tasked with protecting the domestic industry and business transformation in politics, has presented an alternative bill on cryptocurrency regulation in the country.

A similar lobby group has also presented an alternative bill in Kiev, Ukraine with the bill seeking to classify cryptocurrencies as assets, unit of exchange, and a store of value.

High ranking entrepreneurs to draft the bill

Some of the high-ranking entrepreneurs and innovators in Russia have been tasked with drafting the bill.

Popular names like Vladimir Vekselberg, owner of palladium and nickel miner Nornickel, and Viktor Vekselbery, head of national innovation fund Skolkovo will form part of the team.

The lobby group also consists of some experts who will advise the group on how to go about the affairs. The expert group includes workers from some national ministries, departments and the lower house of the Federal Assembly of Russia, the State Duma.

Elina Sidorenko, vice president of the lobby group, pointed out that the alternative bill is seeking to split digital assets into three groups:

  1. Tokens
  2. Cryptocurrencies
  3. Digital signs

She added that cryptos have a special status, something that has never been seen before in the country’s legislature. The sector will be regulated by the laws and regulations which will be put in place by the Russian Central Bank.

Exchanges will be given license to operate by the Central Bank, thus crypto owners will be treated similarly to securities owners.

The term digital sign has not been accurately defined but the vice president stated that the issuers of the digital sign will not need to apply for licenses in the country. She further noted that tokens will be classified as securities.

She also pointed out that the current bill is fragmented and unfinished at this time, thus the proposed alternative bill will eliminate confusion and bring clarity.

A new crypto bill filed in Ukraine

In Ukraine, a bill that proposed crypto-to-crypto trade should be exempt of government regulation has been filed in the country’s parliament. The draft has so far received 23 signature from members of the Verkhovna Rada.

Ukrainian Member of Parliament Alexei Mushak made this known during a crypto conference in Kiev. Local media outlet Forklog reported that the document defined virtual assets while also differentiating between cryptocurrencies and tokens.

The sponsors of the bill are looking to insert a preferential tax regime in the cryptocurrency space. The proposal suggests that crypto incomes and profits of both private individuals and corporate entities should be taxed 5% until 2024.

Three cryptocurrency drafts have been submitted to the country’s Rada over the past one year but no progress has been recorded towards their adoption despite passing through several committees set up by the parliament.

The new draft is seeking to relieve the government from any responsibilities related to the oversight of crypto-to-crypto trading.

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