Russian legislators have passed the nation’s first crypto law after discussing crypto regulation for the last five years. The bill, titled “On Digital Financial Assets,” has had dozens of versions that have varied from one another massively.
The version that was discussed last year didn’t have any identification of any digital currencies whatsoever. Another bill presented this year proposed jail sentences for buying large amounts of crypto with cash and large fines for smaller amounts.
While the current version mentions digital currencies, it is not going to send Russian traders to the decentralized gulag. Basically, it restricts buying goods and paying for services with crypto, while issuance and trading of digital currencies will be regulated by separate laws that will be discussed in the future.
The reason for this is that the so-called, much anticipated “crypto regulation” isn’t about crypto at all.
Digital financial assets equal security tokens
According to the new law, digital financial assets, or DFAs, represent digital rights, including monetary claims, the possibility of exercising rights under issuable securities, the right to participate in the capital of a nonpublic joint-stock company, and the right to demand the transfer of issuable securities.
In a broad sense, this means that DFAs are tokenized securities. Basically, the new Russian law regulates the issuance, turnover and offering of tokenized assets.
DFAs can be purchased using fiat — Russian rubles and foreign currencies — and other DFAs. Additionally, in the secondary market, they can