Russian Legal Framework for Digital Tokens

Abstract

The adoption of the Federal Law "On Digital Financial Assets", based on the national program "Digital Economy of the Russian Federation", was to take place before December 31, 2018. Despite this, it was adopted in its final version only on July 31, 2020. This regulatory legal act regulates relations related to the use of new digital technologies that can significantly affect the Russian financial market. It was very difficult for the legislator to determine the concept of legal regulation of cryptocurrency and digital tokens, since their complete ban could lead to the movement of public relations data into the shadow economy. Therefore, the legislator has chosen an approach that is based on not prohibiting digital financial assets, but not allowing them to circulate freely. This article examines the Federal Law "On digital financial assets, digital currency and on amendments to certain legislative acts of the Russian Federation" in comparison with previous versions. The author analyzed the provisions of the law on digital tokens. Also, the requirements of the legislation regarding the control over the activities of the network operator in which the tokens are issued were studied. The article concludes that the approach used in Russia is maximally aimed at establishing state control over ICOs and protecting investors. This is achieved through the fact that stringent legal requirements contribute to the occupation of a niche for the provision of digital token operator services by large banks and financial institutions.