Putin signs law to ban crypto payments in Russia

Russian President Vladimir Putin recently signed a bill outlawing crypto payments, reaffirming that the ruble is the only official currency recognized by Russia.

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A new federal law, signed on Thursday, aims to ban the use of digital financial assets as a means of payment, according to an update on the Russian Legislative Support System website.

According to the new law, digital assets are no longer considered “currency substitutes” and therefore cannot be used as a method of payment for goods and services, other currency units are also prohibited, and the ruble is the only official currency accepted in the Russian Federation.

Russia wants to ensure compliance by holding exchange operators and businesses accountable for any breaches. Under Russian law, such operators are considered “subjects of the state payment system” and must comply with regulations, which include restrictions on the types of transactions and a ban on offering leveraged and yield products to their customers.

The Russian government can now directly confiscate financial assets without the involvement or consent of an exchange. Securities backing digital assets may also be legally terminated without notice to the asset holder.

Russia has been showing an ambiguous stance on cryptocurrencies. In May, Russia’s central bank said it was open to the idea of ​​using cryptocurrencies for international settlements, but not necessarily within Russia. On the other hand, Russia’s Minister of Industry and Trade said that crypto payments will be legalized “in one form or another, sooner or later.”

Russia has come under scrutiny this year for allegedly using cryptocurrencies to evade sanctions after invading Ukraine. A survey released earlier this year by cybersecurity firm RTM Group said lawsuits related to cryptocurrencies, digital asset exchanges and minting rose sharply in Russia to a total of 1,531 cases, 62 percent of which were criminal, mostly related to drug trafficking.

Yury Chikhanchin, head of the Russian Federation’s Federal Financial Supervisory Service (Rosfinmonitoring) agency, has said that Russians are actively using foreign cryptocurrency platforms. “On two foreign websites, on two exchanges alone, hundreds of thousands of Russian citizens are involved in tens of billions worth of [crypto] transactions,” he said.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/putin-signs-law-to-ban-crypto-payments-in-russia/
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