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In Russia, they can create a separate regulation of the NFT, without introducing special provisions into the Tax Code. This initiative was made by the Center for Strategic Research (CSR). He suggests that the relevant departments consider the issue of separate regulation of non-fungible tokens (NFT), as well as persons ensuring synchronicity and consistency of the transition of tokenized property rights and records of their accounting in the blockchain.
According to Vedomosti, this initiative is indicated in the next report of the center entitled “Virtual Assets: NFT and Virtual Items in Computer Games and Metaverses”. The report further examines the legal regulation of virtual objects in computer games and Metaverses, where models are implemented. play-to-earn.
Why the CSR proposes to create a separate regulation of NFT in Russia
The Center for Strategic Research recommends the creation of a separate regulatory framework for the NFT due to the fact that the legislation does not clearly define the legal regimes for regulating the NFT. Moreover, the NFT may be subject to VAT taxation without the introduction of special provisions in the Tax Code.
The Central Bank of the Russian Federation reported that so far they have not received a report from the CSR and added that the issues of regulating certain types of NFT can be solved within the framework of the law on investment platforms. These issues will be considered by the Central Bank together with other participants of the financial market of the Russian Federation,
The CSR pays special attention to the fact that the clear legal contours of the NFT, its legal regime have not yet been worked out. Based on this, it is necessary to amend the article on digital rights of the Civil Code (CC). The article indicates that the concept of digital rights can cover tokens that are not provided for in the law. According to the CSR, such a step will allow, without changing the general article on the objects of civil rights, to emphasize the admissibility of the issue and circulation of the NFT.
In the event that the NFT is defined in accordance with the Civil Code as “other” property, then for the Tax Code tokens will be recognized as property and, accordingly, goods. In this situation, they will not be taxed when buying and mining. But the NFT may be subject to VAT taxation without the introduction of special provisions in the Tax Code.
For separate regulation of tokenized property rights, the CSR proposes as one of the options the introduction of an agent similar to an escrow agent. This agent can monitor the safety of tokenized things, ensure synchronization of making changes in the blockchain with the transition of property rights.
When will a separate regulation of NFT be introduced in Russia
The CSR could not give an exact date. The issue needs to be worked out by many departments, including the Central Bank and the Ministry of Finance. The process may drag on for several years, while the regulator and the government will coordinate their positions on the NFT as a whole. The bureaucratic machine has been considering such issues for a very long time. The positions of the departments can change dramatically, up to the point that the NFT will be banned altogether in Russia. Nothing can be ruled out in the current economic conditions.
Author: Vadim Gruzdev, Analyst Freedman Club Crypto News
#Russia #regulation #NFT