Digital Securities Regulation In Russia
4 Aug 2020 — The Russian President last week signed into law a federal statute introducing digital assets within the legal framework that differentiates between #digitalsecurities and digital currencies.
While #cryptocurrency is considered as foreign currency for Switzerland and financial asset for Bulgaria, it is deemed as property for Russia, just like United States. Russia’s Crypto Law bans the acceptance of cryptocurrency as consideration (legal tender) by Russian entities and Russian tax residents.Digital Securities’ rights include:
✅ Monetary claims
✅ Possibility to exercise rights under securities
✅ Participation rights in the capital of non-public joint-stock companies
✅ Right to demand the transfer of securities that are stipulated by the decision to issue digital securities
Digital Securities issuance may not be offered to the general public and can only be placed via a private offering among the persons known in advance. Central Bank of the Russian Federation (Bank of Russia) may decide that certain types are only eligible for purchase by qualified investors.
Interestingly, digital securities do not necessarily have to be issued or exchanged by means of distributed ledgers.