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The use of tokens to buy homes poses major regulatory challenges

The use of tokens to buy homes poses major regulatory challenges

Offers for the purchase of tokens for a part of the value of real estate objects may appear on the Russian market as early as next year. Руководитель Экспертного центра по уголовно-правовой политике и исполнения судебных актов «Деловой России» Екатерина Авдеева оценила перспективы и риски механизма, related to investing in real estate through the purchase of tokens.

The development of digital assets and the expansion of the scope of digital currency is, undoubtedly, step forward. Investment attractiveness, transaction speed, growth in liquidity and profitability are of particular interest to the construction industry. The announced mechanism makes it possible for small investors to enter the market, who today does not have enough funds, to purchase the entire property. At the same time, this will stimulate the construction industry and provide significant support to demand..

However, due to weak regulation and the lack of established judicial practice, housing tokenization may have criminogenic properties.. It is also important to take into account, what faces, who will invest tokens in housing, still often do not have sufficient financial and legal literacy. Do they know all the subtleties and rules of digital currency regulation? What regulations apply to this type of investment? How to protect your rights in case of bankruptcy of the company?

When determining the legal fate of housing tokens, it is necessary to divide assets into digital and tokenized. Issues of digital financial assets are regulated by federal law dated 31.07.2020 No. 259-FZ and assigned to the group of digital rights (Art. 141.1 Civil Code of the Russian Federation). They may be involved in real estate transactions, but will not be tokens. Tokenized Assets, in its turn, are not in the direct legal field of the legislation of the Russian Federation and cannot be regulated by general provisions on digital rights and assets.

Meanwhile, relations under a brokerage service agreement are determined by the provisions of the Law “On the Securities Market”. Here we are talking about risky activities and transactions., through which you can generate income, i.e. client, entered into a brokerage agreement, will no longer be considered a consumer. It's about the investor., who is responsible for his actions.

Also important is the issue of attracting tokens to the bankruptcy estate of the debtor.. From the point of view of the principles of reasonableness and good faith, they should be considered property, since they have the properties of personalized belonging along with other objects of civil rights. However, due to the lack of clear regulations, Qualification issues can depend on many factors, including individual, resolved in litigation.

Thus, the use of tokens for the purchase of housing poses the most important problems for the regulation of new financial instruments. So, to ensure a uniform understanding and lack of legal risks, it is necessary to provide a good information field with clear step-by-step regulations. Today we are talking about the development of an accessible memo, which will be verified by the competent authorities. In the long term, it seems important to carry out a large amount of analytical and law-making work on the way to the formation of Russia's legal policy in the field of circulation of digital financial entities., and the Business Russia Expert Center is ready to get involved in this work in the most active way.

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