Analytical Center Warns Against Excessive Regulation of Digital Economy

30 august 2019

Vladislav Onishchenko, the Head of the Analytical Center, noted that "there is no need to excessively regulate areas where technologies are changing rapidly and technological solutions skyrocket one day and go down another day." He believes that digital technologies should be given the opportunity to develop without excessive legislative regulation.

"First, we had the following message: we needed to adopt a regulatory framework to stimulate development... It often turns out that it is more important to give technology the opportunity to develop itself than the need to immediately regulate and establish particular rules, because tomorrow it may take a completely different decision," he told reporters during a working trip to St. Petersburg on Wednesday.

Mr. Onishchenko cited cryptocurrency as an example. "Cryptocurrency is a good example; there was such a hype about this, and it was urgent to pass a law. In fact, the law has not been adopted yet, but hype has decreased, and this is good because, at some point, they realized that it was not necessary to regulate excessively areas where technologies change so quickly and technological solutions are skyrocketing one day and going down another day. It’s not clear, we would adopt regulations, start implementing them, and then it would turn out that we are running in one direction, and the whole world is going in the other," Mr. Onishchenko explained.

According to the indicators of the Digital Economy National Program, the status of the Russian segment of the Internet, its infrastructure, its functioning should be enshrined in law, legislative regulation of the digital economy development with regard to remote biometric identification and cloud signature, legalization of smart contracts should be ensured, and a federal law regulating the creation and functioning of special legal regimes in the digital economy ("regulatory sandboxes") should be passed in 2019.

Source: The Future of Russia