The CFA law does not provide for the regulation of crypto exchanges without tokens
An analytical study by Moscow Digital School reveals a number of gaps in the new law on CFA.
Business school experts note that one of the main problems is the use of terms that are not widespread in international practice, but their own terms, which introduce new legal institutions and thereby create uncertainty in law enforcement. The text of the law also does not spell out the regulation of certain types of tokens and cryptocurrencies with various functions, and there is also no definition of mining..
In addition, there is a contradiction in the recognition of digital currency as a means of payment. The initial definition in the Federal Law itself recognizes it as such a means, but further Art. 14 already prohibits legal entities and individuals from accepting digital currency as a counter-provision for transferred goods, services or payments in any other way. This significantly limits the use of cryptocurrency on the territory of Russia, and also reduces the economic feasibility of owning it..
The authors research also found a gap in the regulation of crypto exchanges. According to the new law, only platforms that trade tokens (digital rights and digital assets) belong to digital financial asset exchange operators, therefore, exchanges that work with cryptocurrencies such as Bitcoin and Ethereum do not fall under the definition of such an entity and remain unregulated. Although the Law on CFA directly allows for the possibility of organizing a platform for the exchange of cryptocurrencies on the territory of Russia.
At the same time, a study of the CEX.IO exchange showed that in the first half of 2020, Russian crypto deposits grew 5 times.
text: Ivan Malichenko, photo: Shutterstock