Several countries have been trying to classify cryptocurrency as an asset type, others as a currency and yet others are trying to define it.

Alexander Konovalov, the Minister of Justice of Russia, stated that it was too early a stage to formalize any crypto-related legislation.

The remarks from Alexander Konovalov are based on the fact that according to the Russian Constitution, it is not possible to make use of the cryptocurrency as a payment method in the country.

The current financial system in Russia and the Russian Legislation categorically prohibit making use of cryptocurrencies as a payment system according to Article 75 of the Russian Constitution.

The crypto bill was passed in the Russian Parliament in the first reading of “On Digital Financial Assets” in the year 2018, during May; however, most of the token and crypto related terminologies have been replaced with the term “digital rights.”  It is also important to note that even the term crypto-mining has been cut from the bill.

A critical assessment of the bill took place, and it was sent back to the first reading stage during late 2018 in December.

An urgent discussion was called for by the Chairman of the upper house of the Russian Parliament. Several Russian Federation Institutions were required to investigate the reasons for the notable delay in developing the legislation for the cryptocurrency industry in Russia.

With several investors pondering over their losses in the cryptocurrency tokens, some of them even losing their sleep over it, when most of the cryptocurrencies like Bitcoin, Litecoin, Ethereum, and Ripple reaching their all-time highs and then falling by 80%, legislators are looking to streamline the crazy asset type with crazy valuations.

They are investing in instruments like cryptocurrency is considered to be a foolhardy risk by many.  The recent incident of QuadrigaCX’s had its investors bleed away several thousands of their dollars for nothing.

Meanwhile, Rostec, a Russian Tech Giant that is state-owned have agreed to improve their operational systems by partnering with Vostok, which is a major Russian news agency. “The partnership with Vostok will give the NCI the opportunity to develop competencies in the implementation of blockchain technologies at the municipal, regional and federal levels.” However, it is now evident that Russia is not prepared to back cryptocurrency as a payment method in the country. They are not bothered to recognize cryptocurrency either. Russia also feels that there is no real need to define cryptocurrencies.