Digital rights got to Russia

    Putin signed Federal Law dated March 18, 2019 No. 34-FZ “ On Amendments to Parts One , Two and Article 1124 of Part Three of the Civil Code of the Russian Federation ”. The amendments are intended to protect the rights of citizens and legal entities in the digital economy. Legislation in this area will be able to develop on this basis. Looking ahead, let's say that we have not reached the crypt yet.

    The bottom line:

    • The concept of digital rights is introduced.
    • It will become easier to make deals
    • For a full expression of will, a description of the button on the site is enough
    • Legalized the processing of arrays of anonymous information


    The bill has been developed since the beginning of 2018. They wanted to fix in the Civil Code "several basic provisions that will allow regulating the market of new objects of economic relations." In the first reading they approved the general concept. But then a number of amendments were proposed.

    The concept of "digital money" did not live up to the final edition. Cryptocurrency will not be fixed in the legislation.

    The legislation does not yet regulate technical issues. They promise to roll out other “special acts” for them.

    By analogy with the token, the new concept of “digital law” provides the right to the owner of the password.

    “In legal” it sounds like this:
    Article 141.1. Digital Rights
    Obligatory and other rights named as such in the law are recognized as digital rights, the content and conditions of the implementation of which are determined in accordance with the rules of the information system that meets the criteria established by law. Implementation, disposal, including transfer, pledge, encumbrance of digital law in other ways or limiting the disposal of digital law is possible only in the information system without contacting a third party.

    The law defines the place of digital law objects in the system of civil rights. The new concept allowed the circulation of such objects, including their sale.

    Among the objects of digital law are financial assets. By these are meant monetary claims, equity securities and equity rights issued electronically.

    The main thing is that the bill protects citizens and legal entities in transactions involving digital law objects.

    Such deals will become easier. For example, it is enough that the button on the site is appropriately signed. By clicking on it, the user makes a full will. For these purposes, sending SMS is also suitable.

    There are a couple of conditions under which you can express your will using "electronic or other similar technical means", and this will be equivalent to a simple written transaction:

    • Firstly, the devices used should allow “to reproduce the contents of the transaction in an unaltered form”.
    • Secondly, it is necessary to reliably determine the person who expressed his will. For this, a single biometric system , which is now being introduced , may be suitable .

    Exceptions will make wills. When compiling them, you cannot use electronic or other technical means.

    The bill focuses on smart transactions. They imply that under certain conditions the information system itself can perform the necessary actions. The simplest example is auto payment, which can be set up at the bank.

    With regard to the collection and processing of large volumes of anonymized information (Big data), lawmakers have expanded the concept of a Database, defining it as a "set of data and information."

    The contract may include an obligation not to take actions, as a result of which personalized information can be disclosed to third parties.

    The operator of the information system working with digital law objects can be a legal entity, which the Central Bank has included in a special register.

    So, already from October 1, 2019, when the law comes into force, we will be able to vote and sign agreements using a smartphone. It is not yet clear whether it will come to the legalization of cryptocurrencies, but such bills look like steps to this. In turn, we are ready to provide a cloud infrastructure that meets any such laws.

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