UpdatesAug 28, 2022

Russian authorities ban cryptocurrency payments in Russia

The new law is the result of long discussions between the Russian central bank and the government about cryptocurrencies.

Bitcoin and all other types of cryptocurrencies have just been banned in Russia by the head of the Russian state. The website of the Russian Legislative Support System reported that on Saturday Russian President Vladimir Putin approved a law establishing an immediate ban on the use of digital financial assets as a method of payment in the country. The BTC / USD rate consolidates above $ 20,500 over the weekend.

Putin decided to ban cryptocurrencies to keep the demand for the ruble

The law is the result of long discussions between the Russian central bank and the government about cryptocurrencies. Moreover, the new law states that the ruble is the only legal tender in the Russian Federation.

The Russian Assembly, known as the Duma, gave the green light to this law last week. The ban is an addition to the 2020 law that prohibits the use of cryptocurrencies as payments for goods and services.

The ruble dominates Bitcoin cryptocurrency in the Russian Federation

The law also allows platform owners who offer currency exchange services to block any transactions that facilitate the replacement of the ruble with digital financial assets. The regulation also applies to consumer digital rights (UDR). The new law will enter into force only 10 days after the information is published by the Russian government.

Under Russian legislation, crypto exchange operators are "entities of the domestic payment system" and must adhere to rules that, among other things, limit the financial activities they may conduct and prohibit providing consumers, inter alia, leveraged products.

In January, the Bank of Russia suggested a complete halt to the use of cryptocurrencies for payments and investments. In turn, the Russian Ministry of Finance in February submitted to the government a draft law on cryptocurrencies, which, like today's regulation, allows investments in digital assets such as Bitcoin and Ethereum, but not their use to purchase goods.

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