Russian regulation for NFTs could come through proposed amendments to existing laws

August 1, 2022

By Sharan Kaur Phillora

The Ministry of Economic Development in Moscow has numerous amendments planned to regulate non-fungible tokens (NFTs), looking to amend the Civil Code and the law “On Digital Financial Assets.”

Here’s what we know:

The news came from a meeting of a special working group held on the initiative of the ministry, Bitcoin.com reported Wednesday (July 27), and the discussions saw participants providing legal definitions for NFTs attended by representatives from the Central Bank of Russia (CBR) and Vkontakte, a Russian social media site, which announced that it wanted to support blockchains and NFTs on its platform.

The Bank of Russia said the Ministry of Economy shouldn’t be working on the issues of digital token regulations. Instead, those issues should be dealt with by the Bank and the Finance Ministry.

Russian officials want to expand the country’s crypto and tokens regulations. Currently, that mainly consists of the “On Digital Financial Assets” law from January 2021, which introduced the terms “digital financial assets,” which partly encompasses cryptocurrencies.

Andrey Tugarin, the managing partner at GMT Legal, said, “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.”

The development came as many Russians were actively using crypto, transacting around $5 billion every year. There have been numerous crackdowns globally on crypto, with many governments wanting to put their own versions of digital currencies out instead.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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