Just when it finally looked positive for the crypto industry in Russia with the Central Bank, Bank of Russia attracted to a pro-crypto approach, the country’s president signed a law banning crypto payments in the region.
The latest update is not an upgrade for the crypto industry in the country. Russian President Vladimir Putin has signed a law banning the use of digital financial assets (DFA) and digital utility rights (DPR) as means of payment for goods, products or services in Russia.
The legal document stated,
“It is prohibited to transfer or accept digital financial assets in consideration for transferred goods, works performed, services rendered, as well as in any other way that allows payment for goods (works, services) by accepting a digital financial asset , unless otherwise provided by federal law.”
In addition, in addition to prohibiting crypto payments, the law also requires crypto exchange operators to deny transactions when it is possible to use such assets as a monetary surrogate. This simply means that crypto brokers that facilitate payments are now subject to the national payment system, leaving them under the supervision of the country’s financial regulator.
Is Russia’s Ban on Crypto Payments Here to Stay?
The bill was originally introduced in June by Anatoly Aksakov, head of the State Duma Committee. After this, when the bill was passed into law, it was the first time for the Russian legislator to explicitly ban payments with digital assets. Previously, the government had only denied legal tender status to crypto, confirming the Russian ruble as the only legal currency in circulation.
In addition, the law came as a shock to many, given that the Russian Central Bank finally… hinted at his first pro-crypto stance. According to a Reuters report, a senior banking official stressed there was a strong chance of “easing his opposition to digital currencies”.