Vladimir Putin has signed a law banning the use of cryptocurrencies to purchase goods or services

Vladimir Putin has signed a law banning the use of cryptocurrencies to purchase goods or services

Russian President Vladimir Putin has signed a law on digital financial assets, which will take effect on January 1, 2021.

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2 Aug 2020 , 17:55 @ Katie Müller

Vladimir Putin has signed a law banning the use of cryptocurrencies to purchase goods or services

Russian President Vladimir Putin has signed a law on digital financial assets, which will take effect on January 1, 2021, informs Russia portal.

The Digital Financial Assets Act (CFA) was examined already in May 2018, when the first reading took place, has undergone many changes since then and is ready to enter into force. The third and the last reading took place on 22 July this year and on 31 July it was finally signed by the President of the Russian Federation.

Law defines the digital currency as:

a set of electronic data that can be accepted as a means of payment that is not a monetary unit of the Russian Federation or a foreign state, as well as as an investment. Such a tool cannot be used to pay for goods or services.

However, Russia gives banks and companies the opportunity to become operators of the CFA exchange, but they must be included in a special central bank register. The central bank will then determine what digital assets can be made available to qualified investors.

The law therefore allows digital assets to be used in transactions, but at the same time they are not recognized as means of payment. Russia also emphasizes the ban on paying for goods and services in the Russian Federation.

In the second reading, was term “cryptocurrency mining” excluded from the law and the regulation of this area will come with another law.

Read also: Iranian Power Plants can mine Cryptocurrencies

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