Authorities in Russia are preparing a number of changes to existing laws in order to adopt rules for the country’s market for non-fungible tokens, or NFTs. An expert group was formed to discuss the issue and propose solutions that would legally regulate and define digital collectible transactions.
Russia’s Economy Ministry Takes Initiative for NFT Regulation
The Ministry of Economic Development in Moscow is planning to put forward several amendments to the Civil Code and the law “On Digital Financial Assets,” to regulate the NFT market in the Russian Federation. This information was obtained from the meeting of an informal working group, which took place at the request of the ministry.
The participants provided legal descriptions for digital collectibles, and the required legislative changes during discussions, Bits.media reported Tuesday. Representatives of Vkontakte (the leading Russian social network) and the Central Bank of Russia were present at the meeting.
The Bank of Russia is known for its strict stance regarding cryptocurrencies and insists that no Ministry of Economy be responsible for issues related to regulation of digital tokens. The monetary authority says these are within its jurisdiction and those of the Finance Ministry. It opposes legalization of bitcoin and other crypto-currencies in Russia.
According to the report, the sector is still waiting to see what the future holds. Andrey Tugarin is the managing partner of GMT Legal. He believes that a wrong definition of digital collectibles could severely limit their scope.
“The functionality of NFTs is not limited to digital art for a long time. They can act as tickets to events or as a form of securing ownership of virtual property, and as a security,” he pointed out.
Russian officials want to expand the country’s regulatory framework for both cryptocurrencies and tokens, currently consisting mainly of the law “On Digital Financial Assets,” which went into force in January 2021. The terms digital financial assets were introduced, which partly covers tokens and digital rights.
In May, the State Duma received a bill that would determine NFTs’ legal status. Russian lawmakers are expected to also review a new draft law “On Digital Currency” during the fall session of the lower house of parliament.
What do you think Russia’s plans are for a non-fungible tokens market? Please share your thoughts in the comment section.
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