A Russian Federal Ministry has introduced a legislation that would legalize crypto and its underlying blockchain technology within a special regulatory jurisdiction.
According to a local news report, the Ministry of Economic Development has prepared a draft law that will permit the testing of crypto and blockchain development within a special ?regulatory sandboxes?. Last week, the draft was introduced to the state Duma, which is the lower house of the Federal Assembly of Russia.
The report says that the experimental law would pertain to digital technologies incorporated in 8 industries. They include finance, healthcare, trade, transport, distance education, construction, manufacturing and public services. It would also unlock experimental testing of projects like crewless vehicles, remote diagnostics, and personal data usage without written consent.
Notwithstanding, there is a specific list of legal norms that residents of the ?regulatory sandboxes? may not follow, and this is in another document dubbed ?satellite? bill. Without this bill, the law approved by the government cannot be implemented, Russia?s First Deputy Prime Minister told the reporter.
Per the report, crypto and blockchain participants of the ?regulatory sandboxes? will be granted regulatory relief based on the minimum size of capital, reserve funds and reporting. They would also be exempted from Russia?s foreign exchange law, the report added.
The Ministry noted that Russia?s central bank will act as a financial market regulator within the ?regulatory sandboxes?, which are going to be installed for a specific period not more than 3 years. However, if the product or service becomes successful, it can be used throughout the country.
The ?regulatory sandboxes? is a special legal regime for the introduction of new technologies that are currently not under the regulations of applicable laws. Its experiment is opened to any legal entity, individual entrepreneur, authorities and local self-government.