Putin Signs Law Prohibiting Payments With Digital Assets in Russia – According to the crypto page of the RBC business news portal, Russian President Vladimir Putin has signed a law restricting the use of digital financial assets (DFAs) as a form of payment within his country. UDRs (utilitarian digital rights) are also subject to the ban.
Although the law “On Digital Financial Assets,” which came into effect in January 2021, introduced the two legal terms, Russia has not yet fully regulated cryptocurrencies. Russian officials have previously stated that UDR only applies to certain tokens, while DFA covers cryptocurrencies. The new “On Digital Currency” bill, intended to close the regulatory gaps, will be examined by Russian lawmakers this fall.
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The legislation that was just approved by the president of Russia was submitted to the State Duma, the lower chamber of the Russian parliament, on June 7 and passed a month later by Chairman of the Financial Market Committee Anatoly Aksakov.
Although “monetary surrogates” are prohibited and the ruble is the only recognized form of legal currency in Russia, until now, the country’s laws did not expressly forbid payments made with digital assets.
The bill prohibits the exchange of DFAs “for transferred goods, performed works, or rendered services,” but it leaves room for DFA payments that are permitted by other federal laws.
The law forbids direct payments made using digital financial assets, and it also requires exchange platform providers to refuse any transactions that would result in the use of DFAs to replace the Russian ruble as a means of payment.
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The new legislation will go into effect ten days after it is published in the official Russian gazette. According to the RBC report, Russian legal experts have already called attention to some issues with the document’s exemption provision.
