According to the Russian news portal RBC, Russian President Vladimir Putin recently signed a law that prohibits the use of digital financial assets (DFAs) as a payment method in the country. This law also prohibits exchange operators from processing transactions that support the use of digital financial assets as a payment method.
In spite of the fact that “monetary surrogates” are already illegal in Russia, the new legislation constitutes the first explicit restriction on payments made using digital assets.
The leader of Russia has, in accordance with recently passed legislation, enacted a direct prohibition on the use of DFAs as a form of payment in the country of Russia. The restriction also encompasses rights to practical digital resources (UDRs).
The decision was made a few months after Russia prepared legislation recognizing cryptocurrencies as a kind of currency, but the legislation included “tight requirements for all participants.” A little over a month earlier than that, Russia’s central bank proposed prohibiting miners and certain crypto operations due to worries that they could put the country’s financial system in jeopardy.
Although the new legislation applies to DFAs and UDRs, Moscow has not yet put substantial regulations on cryptocurrencies. However, the new regulation does apply to DFAs and UDRs. It is anticipated that the nation’s officials would study new legislation titled “On Digital Currency,” which is intended to fill the regulatory voids that now exist.
Anatoly Aksakov, Chairman of the Committee on Financial Markets of The State Duma, was the one who introduced the new legislation that was just approved today. He submitted it to the lower house of the Russian parliament one month ago. According to the report, the new legislation is going to become operational within the next ten days.
The use of digital financial assets to pay for “transferred products, performed works, or rendered services” is prohibited by the legislation; however, the regulation does not restrict the use of DFAs to pay for other types of transactions. The Russian financial authority stated earlier this month that it was inclined to tolerate the usage of digital assets for the purpose of making settlements with overseas partners.
In light of the severe sanctions imposed on Russia by the west in response to its invasion of Ukraine, the idea to utilize cryptocurrency in international settlements has been met with widespread approval. On the other hand, the vast majority of government entities in Russia continue to hold the view that the ruble should be the sole currency that may be used for transactions that are considered legal tender.
More Legislation Regarding the Regulation of Digital Currencies Is Currently Being Drafted.
Following the imposition of the prohibition on DFA payments, the legislators of Russia are presently working on additional legislation that targets digital assets. It is anticipated that the impending measure titled “On Digital Currency” would implement complete regulations on the market for digital assets in the nation, while the bill titled “On Mining in the Russian Federation” will impose new rules on the mining block rewards.
A cryptocurrency monitoring program was launched by Russia’s financial monitoring agency a year ago, with the goal of integrating “the mechanism for the circulation of digital currencies into the financial system and ensure control over cash flows in the circuit of credit institutions.”
Amidst the ongoing “cryptomania,” the government agency said the previous week that it intends to enhance the capabilities of its crypto monitoring service. Aksakov drew parallels between cryptomania and the addiction that is associated with the gambling industry, which is another industry that is highly regulated in Russia.