The crypto market in Russia has come under scrutiny in recent months. Various measures have since been taken to institutionalize crypto as a highly taxable investment asset. Now, Russian regulators want to make it clear that the upcoming legal turnaround does not include windows for using digital financial products as a payment method.
Not paying for goods or services with crypto
The head of the financial markets committee of the lower chamber of the Russian parliament, Anatoliy Aksakov, has introduced the bill. It would prohibit any form of payment for goods or services through cryptocurrencies. The bill’s cover note says:
The Ruble is the official monetary unit (currency) of the Russian Federation. The new bill prohibits the introduction of other monetary units or monetary surrogates into the territory of the Russian Federation.
Gray zone
Previously, using digital assets to pay for goods and services was still a gray zone in Russia. No rules had yet been formed. This will now change if the bill is passed.
In addition to the payment ban, the new bill also introduced the concept of an ‘electronic platform’. This is still loosely defined as a financial platform, investment platform or information system in which digital financial assets are issued.
Such electronic platforms would be recognized in the possible new law as the subjects of the national payment system and obliged to submit to the register of the country’s central bank. However, it is still a bill and has yet to be passed before it could go into effect.