Russia bans digital assets payments

Tuesday 12 July 2022 12:56 CET | News

The lower house of Russian parliament has adopted a law prohibiting the use of digital financial assets in payments.

To implement the restriction, exchange operators have been obliged to reject transactions which make it possible to employ these assets as a means of payment. The majority in the State Duma, the lower house of Russia’s Federal Assembly, has supported the adoption of a bill banning payments for goods and services using digital financial assets (DFAs) within the Russian Federation.

Under current Russian legislation, DFAs is the only legal term that can apply to cryptocurrencies, until lawmakers review and adopt the dedicated draft law on digital currency, designed to regulate the crypto space more comprehensively. The ban also affects utilitarian digital rights, or tokens.

The measure will be implemented by obliging platform operators, such as exchanges, to refuse to process DFA transactions facilitating digital asset payments. Token issuers and investment platform operators should also make it impossible for their clients to change records of DFAs when making transactions with them.

However, the restrictions may not apply to some payments with utility tokens that are regulated by other federal laws, or if certain transactions are envisaged in the original agreement for the acquisition of the respective digital right.

Recently, Russia has legalised cryptocurrency mining, provided the proceeds from the activity are converted to fiat outside of Russia.

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Keywords: regulation, crypto, digital assets, crypto asset, virtual asset
Categories: DeFi & Crypto & Web3
Countries: Russian Federation
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DeFi & Crypto & Web3

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