Russian bill prohibiting use of digital assets when payment passes first reading

The State Duma, the lower house of Russia’s parliament, passed a bill in first reading to ban the use of digital assets to make payments.

However, RBC, a Russian local media, reports that lawmakers introduced a caveat to the provisions of the bill. The prohibition can be lifted in the presence of the cases provided for by federal laws. If passed, the law will enter into force ten days after its publication.

The bill was introduced earlier this month by Anatoly Aksakov, head of the State Duma Committee on the Financial Market. It proposes to directly prohibit the use of digital financial assets (DFA) and utility digital rights (UTR) as a means of payment for the transfer of goods and services in Russia.

In addition, the bill places platforms that issue digital assets under the control of the national payment system and requires them to refuse transactions when it is possible to use digital assets as monetary substitutes.

According to Aksakov, the bill is necessary to close the loopholes left by the country’s current digital currency regulations and consolidate the ruble’s position as the only accepted legal tender.

The intricacies of the bill have so far been the subject of debate among Russian legal experts. As reported by RBC, a team of lawyers discussing the bill pointed out that the bill contains multiple contradictions and gray areas.

An expert, Roman Yankovsky, points out that the term “money substitutes” has not been defined by any existing Russian law. Similarly, Russian law considers digital assets as property, which renders the law prohibiting their use as currency moot.

Russia moves forward with other digital currency regulatory laws

Several other laws targeting digital assets are progressing through the Russian legislative system. The draft law “On Digital Currency” will establish the regulatory framework for the entire digital asset market, while the draft law “On Mining in the Russian Federation” will regulate block reward miners.

In late May, an amendment to the Block Reward Mining Bill was submitted to remove a proposed one-year tax amnesty for block reward miners. Previously, the Russian Federal Tax Service launched a bid to include digital assets in the tax code.

The pace of digital currency regulation has been slow due to the international sanctions the country is facing due to its invasion of Ukraine.

Watch the BSV Global Blockchain Convention Dubai 2022 Day 1 here:

Watch the BSV Global Blockchain Convention Dubai 2022 Day 2 here:

Watch the BSV Global Blockchain Convention Dubai 2022 Day 3 here:

New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn about bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.

About Matthew R. Dailey

Check Also

Rwanda: the city of Kigali has a new transport payment card

Commuters in Kigali will now have options when paying transport costs after a new player …