Russia’s bill to regulate cryptocurrencies has been signed into law by President Vladimir Putin. The new law gives the cryptocurrency legal status, but prohibits its use as a means of payment.
Russian draft crypto law signed
Russian President Vladimir Putin signed the law regulating transactions in digital financial assets (DFA) on Friday, reported the Russian media RIA Novosti. It was approved by the State Duma, the lower house of the Russian Parliament, on July 22nd, and by the Federation Council on July 24th. The law will come into force on January 1, 2021.
The law defines the digital currency in such a way that it is recognized “as an aggregate of electronic data that can be accepted as a means of payment, not as a currency unit of the Russian Federation or a foreign state and as an investment,” Russian news agency TASS describes. “The digital currency cannot be used to pay for goods and services at the same time.”
Meanwhile, the law provides that digital financial assets are “digital rights, the monetary claims, the ability to exercise rights in negotiable securities, the right to participate in the equity of a private joint-stock company, and the right to demand the transfer of negotiable securities that are set out in a resolution include on the DFA issue, ”noted TASS. These assets can be sold, bought, exchanged and pledged. However, they cannot be used as a means of payment.
Russian banks and exchanges can become exchange operators of digital financial assets, provided they register with the central bank, the Bank of Russia. The publication elaborated:
The central bank has the power to keep the register of information systems and the register of operators of exchanges of digital financial assets and to supervise the operations of the operators of information systems.
Individuals and legal entities in Russia can only contest cryptocurrency transactions in court if they have declared these transactions and have cryptocurrency, according to RIA Novosti.
A number of cryptocurrency-related terms were excluded from the final bill after the second reading, e.g. B. “Token” and “Mining”. Anatoly Aksakov, chairman of the State Duma committee on financial markets, told the news agency that more detailed regulation of cryptocurrency will be included in another bill that could be passed at the autumn session. The bill that Putin signed is posted on the official legal information portal of the Russian government and can be found here.
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