Russia President Vladimir Putin has recently signed a bill which implies a prohibition against cryptocurrency payments in the country. The law signed by the president bans the use of digital securities and utility tokens as a means of payment for goods, services and products in Russia, according to a policy amendment on Thursday.
The law was initially presented to the Russian assembly, known as Duma, by the chairman of the financial market committee Anatoly Aksakov on June 7, and approved a month later. According to a document which asserts the recent law, the use of all digital securities and cryptocurrencies as means of payment for goods, services and products is officially banned in Russia.
The document reads: “It is prohibited to transfer or accept digital financial assets as a consideration for transferred goods, performed works, rendered services, as well as in any other way that allows one to assume payment for goods (works, services) by a digital financial asset, except as otherwise provided by federal laws.”
The recent announcement adds to the previous digital asset law previously presented in 2020, banning cryptocurrencies from being used in payments.
Every exchange service in the country will have the power to turn down transactions that use digital financial assets (DFAs) for payments.
However, the digital assets are not banned by the bill meaning that there are other possible applications, including payments for international trades.
Putin expressed support for Bitcoin mining in January, saying that the country has advantages such as surplus electricity and well-trained personnel.
Due to the fact that Russia is currently facing significant economic sanctions due to the war in Ukraine, some government officials support the idea of allowing crypto payments for the purpose of trading with partners.
Despite the recent contradictory news, crypto remains a hot topic in Russia. Some believe the country is evading sanctions with crypto, but experts say the chances of this happening are very low due to the public nature of the blockchain and the size of Russia’s economy.