Russian Draft Bill Defines Cryptocurrency as Assets, Not Legal Tender

08:28 GMT, 20 March 2018

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MOSCOW (Sputnik) - A draft Russian bill on cryptocurrency and digital tokens sees them as assets, but not legal tender, so they cannot be used to pay for goods and services in Russia, according to the information on the law introduced into the parliament.

Sputnik

The draft law defines a new type of contract, a smart contract, based on the same blockchain technology that underpins cryptocurrencies.

The difference between a digital token and a cryptocurrency is defined based on the number of producers: one person for a digital token and several persons (miners) for cryptocurrencies.

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The draft law provides a definition for such terms as "digital signature" and "digital transaction," outlines the legal framework for various new activities, including mining as well as validation of digital transactions through blockchain.

The draft law allows to exchange digital tokens or cryptocurrency for rubles or foreign currency only through special operators, including brokers and special platforms.

A separate article outlines the legal framework for the Initial Token Offering procedure, which allows cryptocurrency startups to fund their projects by selling off portions of the future product.