The lower house of the Russian parliament has passed a law prohibiting the use of digital financial assets in payments. To implement the restriction, exchange operators were forced to reject transactions allowing these assets to be used as means of payment.
Russian parliament approves legislation preventing payments from digital financial assets
The majority in the State Duma, the lower house of Russia’s Federal Assembly, backed the passage of a bill banning payments for goods and services using digital financial assets (DFAs) within the Russian Federation.
Under current Russian law, DFAs are the only legal term that can be applied to cryptocurrencies, until lawmakers consider and pass the dedicated “On Digital Currency” bill, designed to regulate more fully the crypto space. The ban also affects utility digital rights, or tokens.
The measure will be implemented by requiring operators of platforms, such as exchanges, to refuse to process DFA transactions facilitating payments for digital assets. Token issuers and investment platform operators should also prevent their clients from altering DFA records when transacting with them, Forklog reported, citing the document.
However, the restrictions may not apply to certain payments with utility tokens that are regulated by other federal laws, or if certain transactions are contemplated in the original agreement for the acquisition of the respective digital right, the report notes. .
The new legislation also classifies DFA platform operators as subjects of the Russian national payment system. This means that they must be added to a special register maintained by the Central Bank of Russia (CBR).
Although opinions on how to deal with cryptocurrencies vary from institution to Moscow, there is a general consensus that the ruble, and its digital incarnation, should remain the only legal tender in the Russian Federation. However, the Bank of Russia recently signaled that it may support the legalization of crypto payments for international settlements.
Officials hope that the newly passed law, which was submitted to the Duma in mid-June, will eliminate the risks associated with using DFAs as “money substitutes”. Another piece of legislation, still under consideration, aims to introduce administrative liability for the illegal issuance and exchange of digital financial assets.
Do you expect Russian lawmakers to adopt more restrictions for digital financial assets? Tell us in the comments section below.
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