Russia Passes Law Banning Cryptocurrency Payments

President Vladimir Putin has signed a law making cryptocurrency payments illegal, reaffirming the ruble as the only accepted currency in the Russian Federation.

Russia regulates cryptocurrency payments as illegal.

According to the website of the Russian legislative support system, the federal law preventing the use of digital financial assets as a means of payment was signed into law by President Vladimir Putin yesterday.

Under the new law, digital assets and rights are no longer accepted as “assets that substitute currencies” and, therefore, cannot be used to pay for goods and services. Other currencies were also banned, reaffirming the ruble’s position as the only officially accepted currency in the territory of the Russian Federation.

Compliance will be ensured by holding exchange operators and businesses liable for violations. Under the law, such operators are considered “subjects of the national payment system” and are subject to regulations that, among other things, limit the types of transactions they are allowed to implement and prohibit providing leverage and profit products to customers.

The Russian state can directly purchase financial assets without the participation or consent of the exchange. Securities that support digital assets can also be legally terminated without notice to the asset owner.

This country has taken an inconsistent stance on cryptocurrencies. In May, the central bank was not banning the idea of ​​using cryptocurrencies for international payments, but not necessarily domestically. On the other hand, the Russian Minister of Industry and Trade stated that cryptocurrency payments would be made legally “sooner or later in one format or another.”

Russians abroad also have restricted access to cryptocurrencies, as sanctions have banned some exchanges from providing services to the citizens of the European Union.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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