Putin Signs Law Banning Payments With Digital Assets In Russia. Reporting from Bitcoin.com, Sunday (16/7/2022), the law requires exchange operators to refuse to process transactions that facilitate the use of DFA, the legal category that currently includes cryptocurrencies, as a monetary substitute.
Putin has signed a law imposing direct restrictions on the use of digital financial assets (DFA) as a means of payment within his country, the business news portal RBC revealed. The ban also applies to utilitarian digital rights (UDR).
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Putin Signs Law Banning Payments With Digital Assets In Russia. Russia has not comprehensively regulated cryptocurrencies, but the law “On Digital Financial Assets,” which came into effect in January 2021, introduces two legal terms.
Russian officials have previously indicated that the DFA covers cryptocurrencies, while the UDR applies to a wide range of tokens.
This fall, Russian lawmakers will review a new bill “On Digital Currencies” designed to fill regulatory gaps.
Meanwhile, the law now approved by Russia’s head of state was submitted to the State Duma, the lower house of Russia’s parliament, on June 7 by Chairman of the Financial Markets Committee Anatoly Aksakov, and adopted a month later.
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To date, Russian law does not explicitly prohibit payments with digital assets, although monetary substitutes are prohibited and the ruble’s status as the only legal tender is enshrined.
Meanwhile, the law prohibits the exchange of DFA for goods transferred, work performed, services rendered, it leaves the door open for DFA payment cases envisaged in other federal laws.
Amid the expansion of financial restrictions, imposed as part of Western sanctions over the invasion of Ukraine, a proposal to legalize small-scale crypto payments in foreign trade with Russian partners has gained support in Moscow.
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Putin Signs Law Banning Payments With Digital Assets In Russia. In addition to prohibiting direct payments with digital financial assets, the law also requires operators of platforms offering exchange services to refuse any transaction that could potentially lead to the use of a DFA to replace the Russian ruble as a payment instrument.
The new law will come into force 10 days after its publication in the Russian government gazette. Regarding the exception options in its application, the RBC report notes that Russian legal experts have highlighted certain controversies in the document.
