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Russia Passes New Cryptocurrency Bill Prohibiting Its Use As a Payment Method

Russia has passed a major bill today related to cryptocurrencies that prohibits the use of cryptocurrencies like Bitcoin as a payment method.

On July 22 Regnum reported that The State Duma Russia’s legislative body has passed a bill titled “On Digital Financial Assets” in its final third reading.

CoinTelegraph: "Russia’s newly passed crypto bill finally provides legal status to crypto but does not allow it to be used as a payment method." #news $news #crypto $crypto #cryptonews #cryptocurrency #cryptocurrencynews — Crypto Business (@cryptobusiness1) July 23, 2020

After initiating the bill back in 2018, Russian authorities has finally agreed to provide a legal status to cryptocurrencies, preparing to adopt the first major part of legislation for the industry. 

Followed by the latest Duma’s decision, the bill “On Digital Financial Assets,” is expected to be officially adopted in Russia on Jan. 1, 2021.

The bill provides a legal definition to digital assets and legitimizes cryptocurrency trading in Russia although, the bill prohibits the use of cryptocurrencies like Bitcoin as a payment method.

Although, the DFA bill provides the foundation for Russia’s cryptocurrency legislation, the regulation of the industry will mainly be a part of a different bill.

The latest report confirms that the actual regulatory framework for crypto will be set out in the bill “On Digital Currency,” or DA.

Reportedly, the Duma expects to pass the DA bill during the autumn session, which ends in late December.

Some industry players are also confident that the latest DFA bill should not be treated as the actual green light to crypto.

Maria Stankevich, head of business development at crypto exchange EXMO, reportedly said that the DFA bill should be regarded as a “glossary” to crypto, while the DA bill is still being discussed by various Russian authorities and may eventually to “come as a surprise.”

Anatoly Aksakov, a member of the State Duma and a major figure behind Russia’s crypto legislation, reportedly said that the new law will allow local firms to issue stablecoins.

According to the official, Russians will be able to launch such coins as well as exchange them for other assets including digital assets that were issued abroad.

As part of the new legislation, Russia’s central bank will reportedly become officially authorized to oversee the activity involving issuance of digital currencies in the country.

Additionally, the bank will also reportedly be able to impose additional requirements to crypto issuers as well as cryptocurrency exchanges.

In the meantime, Russia’s central bank will also be in charge of providing a framework on what types of digital currencies can be purchased by qualified and unqualified investors.

Source: Cointelegraph | Image: Unsplash



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