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Russia Forbids Cryptocurrency As Means Of Payment

Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, has confirmed that the bill to regulate cryptocurrencies in Russia has been completed. He detailed how it would affect the payment system, exchanges and miners in Russia.

BY DAYO ADESULU with AGENCY REPORT

RUSSIA has completed a bill that redefined cryptocurrency thereby prohibiting it to be use as a means of payment for goods and services.

This was stated by Anatoly Aksakov, the chairman of the Russian State Duma Committee on Financial Markets who confirmed that the bill which provides the regulatory framework for cryptocurrencies in Russia has been completed. Russian media RBC reported this week.

Aksakov said: ”We came to the conclusion that it is necessary to define these tools but to prohibit their use as a means of payment.

READ ALSO: Warren Buffet Says, ”I Don’t Have Any Bitcoin, I Don’t Own Any Cryptocurrency”

”The law will define digital financial assets, the procedure for their issue and circulation. It will also include the issue and circulation of digital assets secured by goods.”

Aksakov explained key features of the bill, including how cryptocurrency exchanges and miners will be regulated. He, however, said, that the bill’s adoption has been delayed due to the coronavirus pandemic.

Russian media RBC reported this week. Aksakov, who is also the deputy of the State Duma of the Federal Assembly of the Russian Federation, has been overseeing the drafting of the bill.

The chairman explained that the bill provides the definition of cryptocurrencies and prohibits their use as a means of payment, elaborating:

We came to the conclusion that it is necessary to define these tools but to prohibit their use as a means of payment.

The law will define digital financial assets, the procedure for their issue and circulation. It will also include the issue and circulation of digital assets secured by goods.

While noting that cryptocurrency mining is not mentioned in the bill, Aksakov stressed that it “is a type of business that produces value,” so it should be taxed. In addition, he clarified that the new law will not interfere with crypto exchanges if they do not violate any directives, but their activities will be regulated.

However, will this cryptocurrency regulations in Russia sail through in the current face of global economic meltdown as declared by IMF? How can Russia monitor the payment of transactions from an individual to another through a blockchain technology without the presence of fiat currency?

What are your views? Please drop your comments below.

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