Several countries havebeen trying to classify cryptocurrency as an asset type, others as a currencyand yet others are trying to define it.

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

The remarks fromAlexander Konovalov are based on the fact that according to the RussianConstitution, it is not possible to make use of the cryptocurrency as a paymentmethod in the country.

The current financialsystem in Russia and the Russian Legislation categorically prohibit making useof cryptocurrencies as a payment system according to Article 75 of the RussianConstitution.

The crypto bill waspassed in the Russian Parliament in the first reading of "On DigitalFinancial Assets" in the year 2018, during May; however, most of the tokenand crypto related terminologies have been replaced with the term "digitalrights.” It is also important to notethat even the term crypto-mining has been cut from the bill.

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

An urgent discussion wascalled for by the Chairman of the upper house of the Russian Parliament.Several Russian Federation Institutions were required to investigate thereasons for the notable delay in developing the legislation for thecryptocurrency industry in Russia.

With several investorspondering over their losses in the cryptocurrency tokens, some of them evenlosing their sleep over it, when most of the cryptocurrencies like Bitcoin,Litecoin, Ethereum, and Ripple reaching their all-time highs and then fallingby 80%, legislators are looking to streamline the crazy asset type with crazyvaluations.

Theyare investing in instruments like cryptocurrency is considered to be afoolhardy risk by many. The recentincident of QuadrigaCX's had its investors bleed away several thousands oftheir dollars for nothing.

Meanwhile, Rostec, a Russian Tech Giant that isstate-owned have agreed to improve their operational systems by partnering withVostok, which is a major Russian news agency.

“The partnership with Vostok will give the NCI theopportunity to develop competencies in the implementation of blockchaintechnologies at the municipal, regional and federal levels.”

However, it is now evident that Russia is notprepared to back cryptocurrency as a payment method in the country. They are not bothered to recognize cryptocurrencyeither. Russia also feels that there isno real need to define cryptocurrencies.