The Russian government has been working towards adopting new technologies and benefit of its citizens. Ensuring digital rights of the people of Russia has thus been one of the major issues on which government has focused greatly. So, it did not come as a shock to the world when Russia decided to legalize the cryptocurrencies. As per the reports received from the Russian Press, the government is planning to cite the cryptocurrencies as a digital right and they will be labelled as digital money or currency. Labelling the cryptocurrencies as digital money is a smart move that Kremlin has taken to include the cryptocurrencies under taxation according to Head of State Duma Financial Market Committee, Anatoly Aksakov. Mr Aksakov also confirmed that cryptocurrencies will be taxed under a completely new category of “Digital Property Rights”. Thus, it will help the government to separate it from simple property rights.
Being a huge supporter of cryptocurrencies, Russia has been proactive in vocalizing towards the legalisation of cryptocurrencies across the world for a long time now. Given the fact that Russian Universities have already started offering cryptocurrency courses and now this latest development in the matter, it does not seem unbelievable that Russian wants to introduce its very own crypto-coin in the near future.
As per the recent reports from Washington, the US government has declared that the cryptocurrencies can no longer be regarded as assets or securities. The US Securities and Exchange Commission or SEC has recently declared that the cryptocurrencies like Bitcoin or Ethereum are to be classified as commodities instead of how they were classified in the past.
It was reported last year that the Chinese Government and the People’s Bank of China had decided to ban the ICOs and other cryptocurrency exchanges. The certain development caused the cryptocurrency market to collapse immediately. However, it has been recently reported that the Chinese Government is working on developing their very own digital currency. Interestingly, the People’s Bank of China has recently patented 40 different cryptocurrencies.
However, the government does not intend to provide the complete freedom that cryptocurrencies provide in the digital currency that they are developing. Hence, they are amalgamating the features of real-world currencies along with the features of cryptocurrencies to develop unique currencies that will help them to stay competitive in the market.
The upsurge in the cryptocurrency market created troubles for the governments as well as the authorities on deciding the right way to categorize the cryptocurrencies. While the prospects that these blockchain powered cryptocurrencies offer are captivating, the governments and authorities across the world are yet to reach a proper consensus on the matter.