The State Duma, Russia’s lower house, has filed legislation making it illegal to use cryptocurrencies for payment. The bill’s sponsors want crypto platforms to stop transactions that could facilitate digital asset payments.
Russian Parliament receives draft law banning cryptocurrency payments
Russian lawmakers will be reviewing a bill that bans the use of digital assets. This legal term, which currently includes cryptocurrencies and utilitarian digital right tokens, is used to describe the Russian law banning digital financial assets. According to crypto news outlet Forklog, the document was submitted by Anatoly Aksakov (chairman of the Financial Market Committee), to the State Duma.
The legislature’s information portal states that after the draft’s approval by committee, members of the lower house will vote on the legislation in its first reading in June. The law, if adopted by the deputies will prohibit crypto payments within the Russian Federation. This is against the background of proposals that allow them in foreign trade agreements.
The bill’s authors also stress that the Russian ruble remains the only legal currency in the country. The bill’s authors state that the ban will eliminate the possibility of using digital assets as’monetary suprarogates’. They also plan to make it mandatory for token and coin issuers, as well as operators of investment and exchange platforms, to refuse to process crypto payments transactions.
These entities are now subject to Russia’s national payments system, according to the legislation. They will need to register with Russia’s Central Bank. Although the monetary authority has been an opponent of legalizing crypto-related operations, particularly payments, it recently relaxed its position on possible cryptocurrency use for international settlements in the face of Western sanctions.
Moscow authorities are currently working to establish comprehensive regulations for the country’s crypto market. The law “On Digital Financial Assets,” approved in 2020, is currently only part of the regulatory framework for the crypto market. It entered into force in January last year.
The adoption of the new law “On Digital Currency”, is being delayed due to ongoing discussions on certain aspects and multiple revisions to the draft, which was submitted in February by the finance ministry. Russian deputies supported amendments to tax crypto transactions in the first reading.