A Bill To Prohibit The Use Of Digital Assets As Payment Has Been Introduced In The Russian Parliament.

In recent months, Russian politicians have been working on legislation to completely institutionalize cryptocurrency as a properly taxable investment asset and potential tool for foreign trade in Russia. They want to make it clear that the future regulatory shift will not include any opportunities to use digital financial products as a payment method.

Anatoliy Aksakov, the head of the Financial Markets Committee in the Russian parliament’s lower house, the State Duma, proposed a measure on Tuesday, June 7, that would restrict the use of “digital financial actives” (DFA) to pay for any form of products or services. As stated in the cover note:

“The ruble is the official monetary unit (currency) of the Russian Federation. The aforementioned article sets a prohibition against the introduction of other monetary units or monetary surrogates on the territory of the Russian Federation.”

The measure references to existing legislation that does not specifically prohibit the use of DFAs as a payment mechanism, however such operations are nevertheless not deemed legal in the country. The new document would make this prohibition public and compel DFA exchange managers to withhold any transactions involving the use of cryptocurrency as a monetary surrogate.

The bill also defined a “electronic platform,” which is a financial platform, investment platform, or information system in which digital financial assets are issued.

Electronic platforms would be recognized as objects of the national payment system and need to register with the central bank. Every significant DFA action — emission, circulation, exchange, and trade — would have its own registry.

The current law on Digital Financial Actives went into effect in 2021. The State Duma approved DFA tax amendments on the first reading in May 2022. Separately, two other significant proposals are making their way through the parliamentary process — a bill “On digital currency” would define the regulatory framework for crypto in general, while a bill “On mining in Russian Federation” would establish standards for miners.

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