In Russia, it will no longer be allowed to pay for goods and services with cryptocurrencies or NFTs. Vladimir Putin has signed a corresponding law on this. However, investing in digital currencies should remain permitted. The law, signed on Friday, bans the use of many digital currencies across the federation for payments.
Bitcoin, Ethereum, and a host of other cryptocurrencies are covered by the ban. The bill was introduced in June by Anatoly Aksakov, chairman of the State Duma’s finance committee. The law must be loud is called to come into effect on July 25, so in just over a week.
Ban comes as no surprise
The ban on cryptocurrency payments comes as no surprise. The Russian central bank had already called for a ban on trading digital currencies at the beginning of this year. Similarities to pyramid schemes and use for illegal activities were used as arguments.
In addition, cryptocurrencies would endanger the stability of the national currency. However, the Ministry of Finance has not complied with the request and considers the regulation to be completely sufficient. Since the law only applies to cryptocurrency payments, it remains legal to invest in assets such as Bitcoin and NFTs in Russia.
In connection with the war in Ukraine, many states fear that Russia will use digital currencies to evade financial sanctions. While some exchanges restrict the activities of Russian users, most platforms will still allow their use.
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