a new bill restricts the use of cryptocurrencies

The use of cryptocurrencies in Russia has been a controversial topic for several years. The Kremlin is moving towards limiting their use as a means of payment in the real economy.

Vladimir Putin signed a new bill on the use of digital resources within the Russian Federation on Friday. He is going to ban cryptocurrencies and NFTs as a means of payment for goods and services on its territory.

Bill restricts the use of cryptocurrencies in Russia – Credit Wikipedia

This law specifies that the and cryptocurrency exchanges must exercise control over their transactions. They will no longer have the right to use cryptocurrencies as payment alternatives for goods or services.

The bill was first presented to the Russian Parliament Duma on June 7 by Anatoly Aksakov, head of the Financial Markets Commission. After validation by the Federation Council, the upper house of the country’s parliament, Putin gave his approval.

In summary, it is still possible to buy and sell digital assets such as cryptocurrencies and NFTs in Russia. But you will not be able to use them for shopping or to pay for the home service.

The point of contention the most important are actually bank transfers. The Kremlin leader aims to better control companies who would have a tendency to circumvent counter-sanctions which he established after the Ukrainian conflict.

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Cryptocurrencies: a divisive topic in Russia

The use of digital assets such as cryptocurrencies and NFTs don’t get unanimous consensus within the government and the Russian ruling class. Indeed, the Russian Central Bank has called for a ban on cryptocurrencies. But the Ministry of Finance objected. The latter believes that the current regulations are necessary and sufficient to allow the development of cryptocurrency technology.

Kremlin leaders keep in mind that cryptocurrencies can be used for money laundering or terrorist financing, or even to circumvent their strategic plans. Russia also plans to issue a digital ruble which it will control. Pending the implementation of this project, the new law will enter into force on 25 July.

Source: Mashable

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