New law obliges Russian authorities to sell all their cryptomites by April 2021

According to a new law, some Russian civil servants have to disclose their cryptomime possessions, while other employees are obliged to sell everything by April 1.

New law obliges Russian authorities to sell all their cryptomotes by April 2021NEWS

Russia adopted its cryptomeda law in January, but this legislation does not provide a direct answer to some questions, including how local authorities should deal with their cryptomeda collections. There are at least two other legal initiatives requiring Russian civil servants to declare or even get rid of their cryptomime reserves entirely in 2021.

On 10 December 2020, Russian President Vladimir Putin signed a decree obliging some civil servants to disclose their holdings of cryptomime by 30 June. The decree was adopted as part of the country’s ‚Digital Financial Assets Act‘, or DFA, which took effect on 1 January.

According to the decree, Russian authorities or individuals seeking to hold public office must disclose their digital assets, as well as those of their spouses and children. The legislation refers to a general scope of official establishment, seeking to ensure that the government complies with the rules of local financial statements as much as ordinary citizens.

But there is also another regulation that forbids certain Russian authorities from possessing any cryptomeda, in line with the country’s anti-corruption measures. On 28 December 2020, Russia’s Ministry of Labour and Social Protection published an information letter reminding some officials that they are obliged to liquidate their digital financial assets and any digital currencies by 1 April, regardless of the country of issuance.

This restriction specifically refers to individuals listed in Part 1 of Article 2 of Russian Federal Law No. 79-FL of May 7, 2013, which prohibits certain categories of people from storing their funds abroad, as well as from using foreign financial instruments, and includes a wide range of important public positions, including executive and deputy public positions, the board of directors of the Russian central bank, state-owned companies owned by the Russian Federation, heads of district administrations, and several others.

In the letter, the ministry mentioned that other categories of civil servants are not subject to these restrictions, although they still need to disclose their digital assets in line with a decree signed by Putin.

Although the Russian authorities continue to introduce new rules related to cryptomoracs for civil servants, it is not immediately clear how they will monitor compliance from a technological point of view. Artem Grigoriev, head of the Russian Association of Cryptomoeda and Blockchain’s research laboratory, told the Cointelegraph:

„There is still no law on the circulation of cryptomoeda. The authors of this initiative probably have their own views on the implementation of these rules. Practice will show. ”
Maria Stankevich, member of the Russian Committee on Blockchain and Cryptoeconomy Technologies, also questioned the technological and legal feasibility of implementing the rules:

„The restrictions of certain groups of the establishment on the possession of digital currency is actually a logical step in the attempts to stop corruption. […] This is a clear signal to all governments that the government now has another lever to show its power when needed. However, the main question is how they will monitor, since there is no such law or process‘.