A move that heralds a shift in the way cryptocurrencies andBlockchain-based payments are carried out in the country has been signed by Russian President Vladimir Putin last week, a ban on all digital payments in the country. The move prohibits the use of digital securities and utility token as a payment method. The bill prohibits the use of digital assets, such asCryptocurrencies and NFTs, to pay for goods and services. How smart money is playing the game of criptocurrency.
It is forbidden to transfer or accept digital 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, the law reads.
Users can still purchase criptocurrency in Russia, but the change means that they can't use the digital currency to pay for services or products.
The 2020 digital assets law in Russia has now been extended to 2020 that prohibits using cryptocurrencies as a payment method.
In January, Putin spoke about Russia's competitive advantages in the criptocurrency industry, referring to the country's energy surplus and well-trained personnel that carry out Bitcoin mining. A month later, the Ministry of Finance unveiled a bill that provides a framework for cryptocurrencies regulation. The Bank of Russia clamors for its outright ban despite the pro-crypto stance of the government.
Russia's invasion of Ukraine in February resulted in an exodus of companies away from the sanctions-battered federation. Some of the world's largest exchanges, including Binance and Coinbase, have banned Russian customers from using their services to comply with new American and European rules.
The Ukraine war has provoked outside concerns about how Russia might use cryptocurrencies as a tool to evade sanctions.