Vladimir Putin passed a law in Russia which prohibits the use cryptocurrencies and other digital assets for payments.
This signature is the culmination of an extensive debate between the government and Russian central banks, which have not reached an agreement on whether to legalize this type of asset or not.
Goodbye cryptocurrencies?
Banks Russia argued for weeks why cryptocurrencies should not be accepted in the country. However, when the invasion of Ukraine began, the government was ready to legalize and regulate them among the prohibitions that the ruble took on in front of the Western gaze.
Now the President of Russia has passed a law that decides to ban the use of cryptocurrencies for payments in the country.
“It is prohibited to transfer or accept digital financial assets as remuneration for goods transferred, work performed, services rendered, as well as in any other way that allows accepting payment for goods (work, services) for a digital financial asset, except as otherwise provided by federal laws,” according to the parliament website.
This contrasts with what Vladimir Puytin himself said, pointing out that Russia it had “certain competitive advantages”, including “surplus electricity and well-trained personnel available in the country” for bitcoin mining.
What does this new law imply?
Under the new law, digital assets and digital rights are no longer accepted as “money substitutes” and therefore cannot be accepted as payment for goods and services. Other monetary units are also prohibited, which confirms the place of the ruble as the only officially accepted currency in the Russian Federation.
Compliance will be enforced by holding exchange operators and businesses accountable for any violations. Under Russian law, such operators are considered “subjects of the national payment system” and must comply with rules that, among other things, limit the types of transactions they can conduct and prohibit the provision of leverage and performance products to their customers.
Financial assets can now be acquired directly by the Russian state without the participation and consent of the exchange. Securities backing digital assets may also be legally terminated without notice to asset owners.
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Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.