Russia: Enactment of Digital Rights Act
In a world that is fast moving with changing times, especially in the last decade, numerous countries have joined the technological advancement movement, Russia with the enactment of their new law has also now embraced the cryptocurrency.
It was earlier in the year that discussion about the legal understanding on the regulation of smart contracts and digital tokens had begun, and it is seen that with good progress the discussion had turned into a bill which has now been enacted.
The bill establishes that electronic rights are treated in the same manner as other legal rights. This clarifies that digital laws and rights will be regulated by civil law.
In regards of smart contracts, the automatic execution of smart contracts will follow the same traditional procedure as that of electronic payment which is used in banks, the new aspect is that with each transaction requires data to be provided, such as identity of the digital rights holder and other parties. This means that contracts can be executed through the means of an information system. The new legislation lays down the regulation of potential and actual investment and contracts but also defines certain restrictions, such as limiting the amount “unqualified investors” can spend or invest on projects to 600,000 rubles.
This act has been followed by the passing of another bill “Law on Crowdfunding” was signed by the President, Vladimir Putin in August and will be enacted as of January 2020.