The bill aimed at regulating the Russian digital currency was signed into law by President Vladimir Putin. The new law on digital currencies provides a legal basis for cryptocurrencies but prohibits its use as a means of payment.
Russia’s bill on digital currencies has been signed into law
On Friday, Russian President Vladimir Putin signed into law a bill governing digital financial asset transactions (DFA), Russian media RIA Novosti reported. It was ratified by the State Duma – the lower house of the Russian parliament, on July 22 and by the Federal Council on July 24. The law will come into effect on January 1, 2021.
The law gives the definition for digital money. “The digital currency will be recognized as an aggregate of electronic data capable of being accepted as a means of payment, not a currency of the Russian Federation or a foreign state, but will be initials. from. ” – TASS news agency described. Digital currencies cannot be used at the same time to pay for any goods and services.
Rights to digital assets
Meanwhile, the law states that digital financial assets “are digital rights including the right to appeal, the ability to exercise negotiable securities rights, and the right to participate in equity of a non-public joint stock companies and the right to negotiable securities transfer can be resolved in a resolution on DFA issue ” – TASS notes. These assets can be sold, purchased, traded and pledged. However, they cannot be used as a means of payment.
Russian banks and exchanges can become regulators of the exchange of digital financial assets provided they register with the Central Bank and the Bank of Russia. The law on digital currencies states:
“The central bank is empowered to maintain operators’ registration of information systems, exchange of digital financial assets and oversee the operations of information system operators. ”
“Individuals and legal entities in Russia will only be able to hear cryptocurrency transactions in court if they have declared these transactions and their ownership of cryptocurrencies.” – RIA Novosti detailed.
There will be a new bill on cryptocurrencies
Some terms related to cryptocurrencies were excluded in the final bill after the second reading, such as tokens or mining. Anatoly Aksakov, head of the National Duma Committee on Financial Markets, said that more detailed cryptocurrency regulation would be included in another bill on cryptocurrencies. This new bill could be passed in the fall session. The bill that Putin signed into law has been posted on the official legal portal of the Russian government.