Cryptocurrency

Russia be banned Bitcoin as the payment method

Russia has finally updated its law to the criptos to a much more flexible with respect to the previous drafts. However, basically prohibited the use of Bitcoin as means of payment. How Bitcoin is useless in the territory?

After you have travelled a long way, Russia has approved a draft law that legally recognized the cryptocurrencies as Bitcoin, but prohibits their use to purchase goods or services.

Bitcoin legal, but useless in Russia

This 22 of July, the local agency of news Regnum reported that the State Duma, the legislative body of Russia, approved a draft law entitled “On the financial assets digital” (DFA) in its third and final reading on 21 July.

This new bill recognizes the digital currency “as a set of electronic data that can be accepted as means of payment” and gives it a legal status.

In this sense, from January 1, 2021, are legalizarán all operations related to the cryptocurrencies. However, not all could be so wonderful.

Despite the fact that Russia has granted legal status to the cryptocurrencies, Bitcoin, and the rest may not be used as a means of payment. This undoubtedly represents a blow as they are designed.

But, then, the question is: If I can’t use Bitcoin and other cryptocurrencies as a means of payment, for what can be used?

As the draft law DFA provides that the cryptocurrencies “can be issued, purchased, sold and registered in the framework of special systems of information”.

In this line of thinking, “the systems and their operators must comply with Russian laws and will remain archived on a relevant record maintained by the Bank of Russia,” notes the press release.

In addition, we should also point out that the current law does not contain the definition of “token” and “mining”. However, it does offer a definition of digital currency.

Also, although this draft law provides a basis for the legislation of the cryptocurrencies in Russia, the regulation of the industry will be part of a project of law is entirely different.

Anatoly Aksakov, told RIA Novosti that it could approve regulations that are more detailed during the next parliamentary session in autumn.

Why is it more flexible?

Previously, we pointed out that, in spite of prohibit to use Bitcoin and other criptos as a method of payment, it is to be a project of law is much more flexible than anticipated.

The reason is that, previously, the legislators of the country introduced a version of the law basically illegal altogether criptos in the country.

In this sense, any company that issued or marketed criptos using infrastructure based in Russia would be illegal.

Also, it was to impose fines of up to $ 7,000 and seven years of jail for people who buy Bitcoin with cash.

Obviously the draft law, generated discontent within the crypto community in Russia. It even sparked protests in the country and reviews in various branches of government.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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