Purchasing of Goods using Crypto Now Banned in a New Law in Russia

Last May, Russia’s Ministry of Economic Development has expressed parliament of its disfavor of a bill to ban cryptocurrency.
Two months later, this dissent seemed void as Russian lawmakers have passed a bill that allows legal status to cryptocurrencies such as bitcoin – but prohibits them from being used in consumer transactions like paying for goods and services.
The new bill will be known as the Digital Financial Assets (DFA) bill after the third and final reading this 3rd week of July.

With this new law, it still recognizes digital assets, but quoting from reports will still “a collection of electronic data capable of being accepted as the payment means… [but] cannot be used at the same time to pay for any goods and services”.

Some solons who support this are senior lawmakers like Anatoly Aksakov also heads the parliament’s financial markets committee.
With this, Russians retain the legal right to buy and hold bitcoin (BTC) and other crypto-assets as an investment. Still, possession of digital currency, its acquisition, and transfer by legal means are allowed only if declared,” the law demands.

According to news reports from Tass, Russia’s central bank will play a pivotal role in regulating virtual currencies. The central bank will have the right to determine the features of digital assets accessible by select but qualified investors only.

Reports also confirmed that virtual currencies could be issued, sold, and registered in the framework of specialized information systems. Their operators shall conform to Russian laws and stand filed in a relevant register kept by the Bank of Russia.”

An earlier version of the law pushes levy fines of up to $7,000 or seven years in jail for individuals buying bitcoin with cash.

One could remember in May that the Ministry of Economic Development sent communications to the State Duma, the lower house of the Federal Assembly of Russia, slamming the bill as its prohibitive approach will not alleviate the security problem of citizens paves the way for the uncontrolled black market.