Russia has banned the use of cryptocurrencies as a means of payment in the country.
Russia’s President, Vladimir Putin signed into law, the bill banning digital payments across the country earlier this week.
The bill is an addition to other prohibitions guiding the operations of the industry in the country.
The legislation, expected to come into force after 10 days of enactment observed that cryptocurrencies cannot be accepted as a means of payment.
Also, the law states that any lawsuits which relate to cryptocurrency ownership will be considered by the courts if plaintiffs report their crypto holdings and deals for tax purposes.
Exchange operators have also been mandated to refuse the acceptance of crypto assets as a monetary substitute in transactions.
“The bill was prepared to improve the infrastructure, turnover capacity, increase the investment attractiveness of the use of digital rights by improving the settlement procedure for transactions, improving the use of financial platforms, investment platforms, information systems, in which digital and financial assets are issued. “the policy amendment read.
The bill defines the operators of electronic platforms and establishes requirements for the operation of electronic platforms.
With the new legislation, cryptocurrency platforms are to be regulated by the Central Bank, while the circulation of digital financial assets will be carried out under its regulation.
The lawmakers, speaking shortly after the presentation proposed measures aimed at improving the operation of electronic platforms and enhancing the use of digital financial assets in the country.
Russia’s Ministry of finance and the country’s Central Bank, the Central Bank of Russia have had contrasting stances regarding the cryptocurrency industry.
While the country’s Ministry of Finance has introduced a bill that would regulate cryptocurrencies in the country, the Bank of Russia, on the other hand, is calling for a ban.