The growing need to regulate cryptocurrencies has been causing more and more countries to share their opinion on the situation. Russia, for one, has not been silent on the matter of cryptocurrency regulations and the nations’ head honcho, Putin, seems to hint that russian cryptocurrency regulations will be coming by July 1st.

In regards to other nations,  some of them clearly share their disregard for cryptocurrencies, others let them flourish within their territories. However, since the spectrum of opinion is not just limited to these two possibilities, some countries choose to “wait it out” to see how the situation unfolds within their region before they even hint at regulations. Finally,  there are those who still maintain a developing stance but with a clear sense to eventually regulate this new financial asset.

Russia has seemingly joined the last segment on that list by eyeing to have regulations adopted for cryptocurrencies by July 1 according to the instructions of President Vladimir Putin, as per reports from Russia’s Parliament Newspaper.

What brought about the sudden need to speed up the process

The need for control in the sense of Russian cryptocurrency regulations has obtained newfound traction within Russia after the events from last week.  Moscow Arbitration Court mentioned that cryptocurrencies cannot be considered as a factor when deciding upon the bankruptcy of an individual.

Naturally, the comments started pouring in; while one side believes that cryptocurrency should be considered while declaring bankruptcy since it is a very viable financial asset, there are those who support the decision mentioning that since the country does not recognize cryptocurrency as a legal asset, the court could not really hold cryptocurrencies to that standard.

Therefore, to avoid the arguable loophole and to effectively pass a definitive ruling on whether or not cryptocurrencies are considered as legal assets so they could be held under financial considerations accordingly, the need for regulations has seemingly reached new heights.

Details on laws being proposed for russian cryptocurrency regulations

It was reported that two draft laws were under consideration for the regulation of cryptocurrencies. This also includes the January 2018 draft legislation from the Ministry of Finance, which had presented the notion of perceiving cryptocurrency as “security in electronic form,” and had specifically dubbed it as a “digital financial asset.”

As per the officials working on the drafts, while most of the proposed rulings are being agreed upon by the Ministry of Finance and the Central Bank of Russia, there are still some points in the regulations which remain highly debatable.

Anatoly Aksakov, Chairman of the State Duma Committee for the Financial Market, mentioned that the Central Bank of Russia disagrees on actually legalizing the exchange operations of cryptocurrencies due to how it could encourage the citizens of Russia to start investing in this new financial asset without considering the proposed risks.

In addition to the officials from the Central Bank of Russia and the Ministry of Finance, comments from the Expert Council of the Youth Parliament under the State Duma, are also going to be considered to ensure that the regulations have been put together by ensuring the inclusion of different perspectives.

While the Central Bank of Russia challenges the main issue of cryptocurrency trading, experts that are involved in the discussion are also arguing against some of the regulations that the Central Bank’s draft proposes, particularly those which pertain to initial coin offerings (ICOs).

For instance, the draft legislation mentions that “only commercial organizations and individual entrepreneurs can attract investments in crowdfunding.”

This leaves non-profit organizations unable to attract cryptocurrency funding for their own operations,  one of the points that are being strongly contested at this point.

How soon can a definitive draft of Russian cryptocurrency regulations be presented?

It is too soon to provide a definitive timeline for this, since the initial points are being discussed at the moment. It might take a few more weeks until concerns such as the ones mentioned above are worked out between the officials. For now, even the most minute of issues would be a cause for discussion since the drafts are being presented for that very purpose. However, once the discussions move forward from this phase, the legislation would start taking shape and could very well be ready to be adopted by the deadline of July 1.