By Legal Fiction Cryptocurrency Would Be Called a Treasure – Discussion Scheduled October 08

Maheen Hernandez By Maheen Hernandez September 28, 2019 Off
Treasure bitcoin

Russia might tax cryptocurrency like it would tax a treasure.  Crypto mining is compared to finding a treasure.  This has been stated in a report which has been prepared by the Association of Banks of Russia (ABR).  This document will be discussed on October 08, 2019, at the association site.

“Using legal fiction, it could be argued that the first owner of the crypto assets ‘found them,’ since the receipt from an anonymous system can be conditionally considered a find.”

Thus the treasure might be permitted to exchange for Rubles.

In Russian Legal Practice, the taxation of such items is equated to “Newly Created Things” which will include the property which is generated individually by a Citizen.

Mining is human activity as a result of which newer products like Bitcoin occurs.  Cryptocurrencies will be considered a thing which will be used in transactions in barter and can, therefore, be taxed accordingly.

There was a point in time when Russia chose to ban cryptocurrencies, and it did not ever have a welcoming attitude towards digital assets.  However, the authors of the ABR saw a danger in banning cryptocurrency operations.  They felt that the government could ban anonymous transactions to avoid usage of Bitcoin in criminal schemes.

However, during April 2019, one of the regulators published a study, which stated that the cryptocurrency was “the least risky and most liquid assets available to a wide range of people.” The attitude of the ABR softened, and this is one reason for why they are trying to look at cryptocurrency from a different viewpoint.

Bertrand Perez stated, “We are not in the area of implementing any monetary policy with the (Libra) reserve.” This project will likely help achieve several sustainable goals of the UN, like achieving gender equality and eliminating poverty.

The attitude towards cryptocurrency is different in different regions.  And newer outlook towards cryptocurrencies and more unique reasons for its implementation are being given by different token providers.

No matter how organizations deal with it, the anonymity factor can be an ear sore to the government.  The idea of anonymity is something that no governments would want to tolerate for practical reasons.

The FATF is working hard to avoid regulatory arbitrage.  The FATF will consider the importance of maintaining consistency in the monitoring process to eventually help with deciding how the cryptocurrency sector in each country are performing when it comes to complying with the guidelines.

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