Putin signs legislation outlawing cryptocurrency payments in Russia.

Putin signs legislation outlawing cryptocurrency payments in Russia.

Putin signs legislation outlawing cryptocurrency payments in Russia.

People in Russia may soon be unable to use digital assets as a means of payment. Russian President Vladimir Putin has approved legislation limiting the use of digital assets to pay for goods and services, such as bitcoin and NFTs. Furthermore, as Protocol points out, the new regulation mandates crypto exchanges and providers to deny transactions in which digital transfers might be regarded as payment. According to the new legislation:

"It is prohibited to transfer or accept digital financial assets as a consideration for transferred goods, performed works, rendered services, as well as in any other way that allows one to assume payment for goods (works, services) by a digital financial asset, except as otherwise provided by federal laws."

According to a New York Times investigation earlier this year, US authorities suspect that certain Russian enterprises burdened by sanctions placed on their nation following its invasion of Ukraine may be utilizing cryptocurrencies to get around such restrictions. Bitcoin's value even increased for a few days after the invasion began in February.

However, Russian authorities are wary about digital assets: The Russian Central Bank has advocated for an outright ban on cryptocurrencies. That most likely did not happen because Russia's Finance Ministry was opposed to the notion and considered that allowing crypto technology to thrive was important. The ban will go into force in 10 days, making cryptocurrency payments illegal in the country. According to Decrypt, Russians can still invest in cryptocurrencies like Bitcoin and, presumably, mine them.

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