Russian President Vladimir Putin today signed a bill banning the use of domestic digital assets, including cryptocurrencies and non-alternative tokens, to pay for goods and services.
The law, which comes into force about seven months after the Russian central bank calls for a ban on the use and mining of cryptocurrencies, does not ban the possession of cryptocurrencies and digital assets, but limits their use. I am. “It is forbidden to transfer or accept digital financial assets as a countermeasure to another method that can be expected to pay for the transferred goods, the work performed, the services provided, and the goods (works, services) by the digital financial assets. “If required by federal law,” the law states.
The January ban call was argued on the basis that digital assets threaten the country’s financial stability and people’s well-being. “The rapid growth and market value of cryptocurrencies is primarily defined by speculative demand for future growth, creating a bubble,” the central bank said at the time. “Cryptocurrencies also have an aspect of the financial pyramid, as rising prices are largely driven by market demand from new entrants.”
It is not exactly clear how many people in Russia will be affected by the new ban. No mention is made of cryptocurrency mining. That is, the law should not affect Russia’s third largest mining community in the world as of April. The law also does not prohibit possession or direct transactions of cryptocurrencies. In other words, it has little effect on most people in Russia.
Russia has a strange history of cryptocurrencies, sometimes trying to ban them and then legalizing them. In 2018, when Russian banks were planning to pilot cryptocurrencies, other Russian banks were against them.
Attempts were made to suspend Russian citizens’ accounts on crypto exchanges in preparation for Russia’s invasion of Ukraine in February, but major exchanges rejected the request. In April, the US Treasury sanctioned Russia-owned cryptocurrency mining company Bitriver AG as part of a crackdown on companies and individuals that circumvent sanctions on Russia.
Join the expert Cube Club and Cube Event community to show your support for our mission. Join the community, including Andy Jassy, CEO of Amazon Web Services and Amazon.com, Michael Dell, Founder and CEO of Dell Technologies, Pat Gelsinger, CEO of Intel, and many other celebrities and experts.