Russian authorities are preparing a number of changes to existing legislation to adopt rules for the domestic market in non-fusible tokens, or NFTs. The working group discussed this issue and proposed a solution to legally define and regulate the trading of digital collectibles.
Ministry of Economy takes initiative to regulate NFT in Russia
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The Ministry of Economic Development in Moscow plans to submit several amendments to the Civil Code and the Law “On Digital Financial Assets” to regulate the NFT market in the Russian Federation. The news was announced at a meeting of a special working group held at the Ministry’s initiative.
During the discussions, participants provided a legal definition of digital collectibles and drafted the necessary legal amendments, crypto news outlet Bits.media reported Tuesday. The meeting was attended by representatives from the Central Bank of Russia (CBR) and Vkontakte, a leading Russian social media network that earlier this year announced its intention to introduce support for blockchain andNFTs on its platform. announced its intention to introduce.
The Bank of Russia, known for its hard-line stance on cryptocurrencies, has argued that the Ministry of Economy should not address issues related to the regulation of digital tokens. According to the financial regulator, these fall under its authority and that of the Ministry of Finance. Regulators oppose the legalization of the distribution and use of crypto like Bitcoin for payments in Russia.
The report adds that, for now, the industry is watching to see how the situation develops from here on out; GMT Legal managing partner Andrey Tugarin said that the Russian legal He expressed the opinion that if the definition of digital collectibles is incorrect, the scope of its application could be significantly narrowed.
“The function of the NFT has not previously been limited to digital art. It can function as security, as a ticket to an event, or as a form of securing ownership of virtual property,” he noted.
Russian authorities want to expand the country’s regulatory framework for both cryptocurrencies and tokens, which currently consists primarily of a law “on digital financial assets” that came into effect in January 2021. It has introduced the terms digital financial asset, which partially covers cryptocurrencies, and digital rights, or tokens.
A bill tailored to determine the legal status of NFTs was submitted to the State Duma in May. Russian MPs will also consider a new bill “On Digital Currency” during the fall session of the State Duma.
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