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Russia’s New Bill: Bitcoin is Legal but not as a Payment Method

Finally, Russia passed the much-awaited bill about the cryptocurrency. Now, cryptocurrency gets legal a status, but the government has not allowed digital currency as a means of payment.

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“On Digital Financial Assets”

Bill named “On Digital Financial Assets” has been accepted by the legislative authority called State Duma. The bill was proposed in 2018 but it got approval in mid-2020.

After getting official approval from Russian authorities, the passed bill will take its practical shape from Jan.01 2020. After this, digital currencies, including Bitcoin, are legal in Russia but there is no permission to use Bitcoin as a payment method.

Upcoming Bill: “On Digital Currency”

However, the legislation for the industry is yet to decide. The regulatory framework covering everything about cryptocurrency will include in the bill entitled “On Digital Currency.”

According to the bill, digital currency is “a set of electronic data (digital code or designation) contained in an information system, which are offered and (or) can be accepted as a means of payment that is not a monetary unit of the Russian Federation, a monetary unit of a foreign state and (or ) an international monetary or unit of account, and (or) as an investment and in respect of which there is no person obligated to each owner of such electronic data.”

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“On Digital Financial Assets” is the new version of the draft law. According to the report by Russian’s local news agency RBC, cryptocurrency in Russia “can be bought, issued, sold, and other transactions made, but Russian residents cannot be paid to it. There is a certain contradiction in this, since the very concept of cryptocurrency in the same document implies its use as a means of payment.”

State Duma’s member Anatoly Aksakov clarifies that the crypto-based local companies can issue a stablecoin. Moreover, cryptocurrency exchanges can be launched for local-issued coins as well as for those coins issued outside of the country.

The Bank of Russia has all the authority in the issuance of digital coins. Moreover, the central bank will provide a detailed framework for digital assets and will monitor the whole process.

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Hassan Mehmood

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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