Putin Approves Cryptocurrency Bill, Banning Russians from Using Bitcoin for Payments

Russian President Vladimir Putin signed one of two digital asset bills into law on Friday.

The new law, passed by Russia’s parliament, the Duma, last week, states that companies can offer virtual securities on blockchain platforms, provided they are registered in good standing with the country’s central bank, the Bank of Russia, and meet various regulations.

The new law also states that decentralized cryptocurrencies are considered a form of property and holders should declare them for tax purposes.

The bill states that, as property, cryptocurrencies cannot be used to pay for goods and services in the country. However, businesses that accept cryptocurrency payments will have until January next year to adapt to the new developments.

According to RIA, the bill is essentially a milder version of the proposed law. Russian lawmakers have developed a new proposal for the bill that would make it illegal for any entity to offer or trade cryptocurrencies in the country.

The initial draft of the bill featured a highly skeptical stance put forward by the country’s central bank, which drew widespread condemnation from the cryptocurrency community as well as the country’s economic development and judicial authorities.

The law also states that Russian residents now have the opportunity to challenge any transaction involving digital currencies in court , provided that the plaintiff has proof of the transaction and is a holder of the cryptocurrency.

The Russian parliament is currently working on a more comprehensive digital currency bill that will cover a variety of issues related to digital currencies. The bill is expected to be discussed and passed by the end of the year. However, the specific date has not yet been disclosed to the public. (Baijiahao)