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August 3, 2020

Russia Declares Cryptocurrency Is Legal, But Prohibits Use for Payments: Report

By Daily Hodl Staff

Russia is reportedly declaring cryptocurrency legal after president Vladimir Putin signed a bill recognizing cryptocurrencies as a type of property that cannot be used for payments.

According to Russian public records, bill number 419059-7 was initially submitted to the State Duma, the lower house of the Federal Assembly of Russia, in March 2018. After more than two years in the review stages, the bill made its way to Putin late last month, reports the state-owned Russian media outlet RT.

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“The Council Federation of the Federal Assembly of the Russian Federation decides:

  1. To approve the Federal Law ‘On digital financial assets, digital currency and amendments to certain legislative acts of the Russian Federation’
  2. This resolution comes into force from the date of its acceptance.”

According to Russian news outlet RIA, legislators define cryptocurrencies as a means of savings and investments but not as a means of payment. In addition, individuals and entities should report their crypto holdings for tax purposes.

The bill also says Russian banks and crypto exchanges will have the capacity to legally sell, purchase, and facilitate the exchange of digital assets after registering with the Central Bank of the Russian Federation.

Anatoly Aksakov, head of the Duma committee on the financial market, says concepts related to the business of cryptocurrencies, such as tokens and mining, will be addressed in a separate bill, which may be passed before the end of the year.

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Featured Image: Shutterstock/Baturina Yuliya