Russian Deputy Minister Discloses Crypto Plans for Offshore Development

The Russian deputy minister of economic development Ilya Torosov has mentioned that a new package of measures for the improvement of Russian offshore will affect ships and digital assets, according to local news outlet TASS.

The Special Administrative Regions (SAR) was developed last year by the Ministry of Economic Development as part of its “Russian offshore companies” initiative, and now, it intends to include exemption from certain taxes of resident ships, as well as provide special regulation of digital assets alongside the issuance of different shares types. Torosov said in an interview:

    “We are working on the issue of exemption of ships registered in the Russian open registry of ships owned by residents of the SAR, from VAT, income tax, transport tax, property tax. We also discuss lower insurance premium rates […] Plus features of the regulation of digital assets.”

According to the news outlet, there might be a possibility of using cryptocurrency since the new development suggests the implementation of features found in the regulatory framework of digital assets. Accordingly, the minister said: “It is clear that this is a cryptocurrency, but for now we are talking more generally.”

The Russian Federation has been working towards a crypto-inclusive economy for a while now. Several opinions and proposals have been brought forward.

The chairman of the financial market committee in Duma Anatoly Aksakov called cryptocurrencies “ambiguous,” further suggesting that they weren’t needed. The Russian Minister of Justice Alexander Konovalov also opined on the early implementation of crypto-related legislation since the digital asset wasn’t a legal tender in the country. Other suggestions such as oil-backed crypto have also been proposed by Energy Minister Igor Yusufov.

In late February, President Vladimir Putin finally instructed two of his cabinet members, Volodin Vyacheslav Viktorovich and Medvedev Dmitry Anatolyevich, to facilitate the development of a cryptocurrency legislature latest by 1 July, putting a rest to the matter.

Published on: 3/6/19, 11:00 AM