Russian President Vladimir Putin signed a law banning the use of cryptocurrencies as a means of payment on July 14, local news media RBC report..
This ban applies to the use of Digital Financial Assets (DFA) and Utilitarian Digital Rights (UDR). This refers to a token that provides rights to a utility or service.
The law states:
“Transferring or accepting digital financial assets in consideration of the goods transferred, the works performed, the services provided, and other means by which the goods (works, services) may be paid for by the digital financial assets. Prohibited. Unless otherwise provided by federal law. “
The last clause leaves an exception to DFA payments that may be permitted by federal law.
The legislation It also imposes an obligation on cryptocurrency exchanges to refuse transactions that DFA or UDR can use in lieu of money. In other words, crypto exchanges need to prevent transactions where crypto assets are used to pay for goods or services.
The bill was first introduced on June 7 in the House of Representatives of the Russian Parliament. Anatoly Aksakov, Chairman of the Financial Markets Commission. The law was approved by the National Senate, the Federation Council, and was sent to Putin on July 8 for review.
Russia has not yet fully regulated cryptocurrencies, but the “Digital Financial Assets” law introduced and defined DFA and UDR when it came into force in 2021.
Russian regulators will consider a new bill, “About Digital Currencies,” which is expected to fill the regulatory gap later this year.
The RBC report states that the law will come into effect 10 days after it is published in the government bulletin.
Change of stance
The Central Bank of Russia has sought a ban on cryptocurrencies for years, but recent developments suggest that banks may have softened their stance.
In May, Russian Minister of Industry and Trade Denis Manturov said sooner or later the country would legalize cryptocurrency payments, Reuters. report..
Another Reuters in the same month report The Central Bank of the Russian Federation said it was open to using cryptocurrencies for international payments.
In June, central bank governor Elvira Nabiullina said interview The RBC states that cryptocurrencies can be used for international payments as long as the assets do not “penetrate” into the Russian financial system.
