Cryptocurrency payments are prohibited in Russia. The law, which will enter into force in 10 days.
People living in Russia will soon no longer be able to use their digital assets to make any payments. Russian President Vladimir Putin has signed a law banning the use of digital assets such as cryptocurrencies and other NFTs to pay for goods or services.
Russia bans payments in cryptocurrency
In addition, as the Protocol explains, this new law also requires exchanges and other providers of cryptocurrencies to refuse any transactions in which digital transfers can be construed as a form of payment.
In particular, the text reads as follows: “It is prohibited to transfer or accept financial digital assets as a reward for the transferred goods, work performed, services rendered or in any other way that allows you to accept payment for goods (works, services) with a digital financial asset, with the exception of cases provided for by federal law.
As The New York Times reported a few months ago, U.S. officials are convinced that some Russian companies hit by sanctions imposed on the country after its invasion of Ukraine can use cryptocurrencies to circumvent these restrictions. The price of Bitcoin even jumped for a few days right after the invasion began in February last year.
The law, which will come into force in 10 days
At the same time, the Russian authorities are not really fans of digital assets: the Central Bank of Russia has called for a complete ban on cryptocurrencies. This did not take place, in part, because the Russian finance minister opposes this idea and remains convinced that crypto technologies must be allowed for the development of the country.
In 10 days, this new law will take effect and therefore make crypto payments illegal in the country. However, according to Decrypt, Russians can still invest in cryptocurrencies like bitcoin and keep mining them if they want to. Only payments are currently prohibited.