Vladimir Putin, the Russian President, has signed a law banning the use of cryptos or other digital assets as a mode of payment for services and goods in Russia. Doing so has made crypto payments illegal, reconfirming the ruble as the only accepted monetary unit in the Russian Federation.
What does the new law underline?
Under the new law, digital rights and digital assets are no longer accepted as ‘monetary surrogates’. The law is anticipated to be implemented by holding businesses and cryptocurrency exchanges liable for infractions. Under Russian law, such operators are regarded as the ‘subjects of the national payment system’ and must adhere to the regulations that, among other things, restrict the types of transactions they are enabled to perform and ban the provision of yield products and leverage to their customers.
What is prohibited in the law?
Financial assets may now be straightaway obtained by the Russian state without the consent of the involvement of the exchange. Securities supporting digital assets may also be legally terminated without notice to asset owners.
What’s the future of crypto in Russia?
Russia has displayed an arguable move towards cryptocurrency. Nonetheless, in May, the Central Bank of Russia signaled to accept the use of cryptos for international payments but not necessarily domestically. While on the other hand, Russia’s Minister of Industry and Trade has said that cryptocurrency payments would be made legal ‘sooner or later’ in one or the other format.