Russia passes law banning crypto payments

President V. Putin signed a law banning payments for goods and services using cryptocurrencies and NFTs in Russia

Russian President Vladimir Putin signed a law restricting the circulation of digital financial assets ( DFA) in the country regulates. Thus, in Russia it will be forbidden to pay for goods, works and services with digital currencies in the future.

Furthermore, the new law stipulates that crypto exchanges and – Providers must refuse transactions that are intended to use digital transfers as a means of payment. The new law is due on 25. come into force in July 2022. This was reported by the Russian news agency TASS.

The text of the law published on the State Duma website reads:

“It is prohibited to transfer or accept digital financial assets (DFA) in return for goods transferred, work performed, services rendered, or in any other way that accepts payment for goods (works, services) through a digital financial asset unless otherwise provided by federal legislation.”

The draft CFA law was submitted to the State Duma on April 7, 2018 June 2022 before. Earlier, the Bank of Russia began to include companies working with digital financial assets in the register of information system operators. The draft law was presented to the State Duma in June by the chairman of the Legislature’s Committee on Financial Markets, Anatoly Aksakov. Putin signed it last Friday. The new law also includes a provision obliging crypto exchanges and providers to refuse transactions involving the use of digital assets as a means of payment.

Central Bank of Russia vs Ministry of Finance

The ban on crypto payments was preceded by months of debate between the Russian government and the central bank. Various authorities have been at odds over whether to outright ban crypto or just regulate it. The Central Bank of Russia called for a ban on both cryptocurrency investments and crypto mining in Russia in January. The Ministry of Finance opposed this. According to him, a “regulation to protect citizens” would suffice. It is “necessary to allow the development of cryptocurrency technology”.

As recently as January, President Putin was enthusiastic about Bitcoin mining. He highlighted “certain competitive advantages” in Russia. Including a “surplus of electricity and well-trained personnel available in the country” to mine the digital currencies. Even after the new law comes into force, Russians could still invest in cryptocurrencies, such as Bitcoin, and probably continue to mine them. This was reported by Engadget, citing Decrypt.

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