Bitcoin Space High

The price of bitcoin jumped well over the $26k handle almost touching a high of $27k on Saturday evening (EST). The overall cryptocurrency market capitalization of all the crypto assets in existence today is roughly $708 billion and up over 9.5% over the course of the day. Recently, Russia adopted Federal Law No. 259-FZ “On Digital Financial Assets, Digital Currency and on Amendments to Certain Legislative Acts of the Russian Federation” (“Law on CFA”), which comes into force on January 1, 2021. The CFA Law introduces two definitions: Digital Currency (“CV”) – this is where BTC, ETH, and many other coins are issued that are issued on the blockchain and where there is no obligated person. For bankruptcy law, digital currency is considered property. Digital financial assets (“DFA”) – digital rights, including, among other things: monetary claims, the ability to exercise rights to equity securities, rights to participate in the capital of a non-public JSC. The main difference between CFA and CV is the presence of an issuer, that is, a person who is responsible for obligations to the owner. Since the issue of CFA should be carried out only through operators that are included in the special register of the Central Bank, it is worth recognizing that even if someone decides to issue CFA in Russia, then shortly it will be a local story without a liquid market. Therefore, further, we will consider only classic cryptocurrencies (or digital currencies in the terminology of the legislator). The main thesis of the Law on CFA concerning cryptocurrencies is as follows: no one has the right to accept digital currency as a counter-provision for goods, works, and services. This prohibition actually excludes the function of the crypt as a means of payment, which is one of the three features of money, along with a measure of value and a means of accumulation. All this can mean only one thing, that soon Russia will be able and will buy cryptocurrencies. In this regard, the growth of Bitcoin and other requested cryptocurrencies will grow significantly during January, and maybe the next months.


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