Central Bank of Russia proposes tax incentives For long-term holders of digital financial assets. The idea was circulated along with a public consultation document for public discussion on the development of digital asset markets in the Russian Federation.
Bank of Russia Discusses Regulation in New Report Dedicated to Digital Assets Market
The Russian Monetary Authority has published a report on the future of Russia’s digital assets sector . This document explores the development of the digital financial asset (DFA) and utility digital rights (UDR) markets, as well as the legal terminology partially covering cryptocurrencies and tokens (especially those with issuers).
The Central Bank of Russia (CBR) believes additional regulation is needed to improve the DFA framework and harmonize it with the rules governing the traditional financial industry. According to the regulator, this will improve investment, distribution, and liquidity while increasing investor protection.
Taxation is one aspect considered in theconsultation paper. The Bank of Russia is proposing to offer tax incentives to investors holding long-term DFAs and UDRs, proposing to adopt a mechanism similar to the special tax regime applicable to individual investment account holders. I’m here. The latter was introduced with the aim of attracting free public funds to the securities market.
CBR believes its proposal will create new opportunities for Russian citizens and businesses, simplify digital asset and digital rights transactions, and reduce operational costs. Please note, however, that additional discussions with relevant government agencies and market participants are required prior to approving such tax benefits.
Central Bank of Russia Promotes Better Identification of Digital Asset Investors
DFA holders wishing to improve the identification procedures applied. The monetary policy regulator, quoted by RBC Crypto, explained that this would allow the country to allow foreign DFAs to enter the market, adopt regulations designed specifically for smart contracts, and develop the necessary accounting procedures.
Among other proposals the CBR is seeking feedback on next month are ideas to facilitate the tokenization of various assets such as securities and bonds, precious stones and metals, and informal property rights. I have. Fungible Tokens, and Mortgage Protected Claims. The Bank of Russia also hopes to cover the listing of digital assets on existing exchanges and the trading of digital assets through intermediaries in a public forum.
Russia is seeking to expand the DFA’s regulatory framework, following months of institutional debate over the status of decentralized assets such as cryptocurrencies. It called for a total ban on its activities, but later agreed with Moscow’s finance ministry to legalize cross-border cryptocurrency payments. That change in stance came as sanctions pressure began in late February following Russia’s invasion of Ukraine. It happened as the
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