March 22, 2023

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The news of the ban/prohibition has continued to generate mixed reactions online and from some citizens of the country. Russia has been one of the countries where their cryptocurrency space/industry has always been a topic. However, signing a bill allowing only Russian currency Ruble as the means of exchange seems extreme.

New Law Against Digital Assets in Russia

Earlier today, the new law was signed by the Russian President, Vladimir Putin, and will take effect 10 days after the official announcement. This new law keeps Russian citizens at an edge, as they are not allowed to transact with their digital currencies. Their DFA (Digital Financial Assets) and UDR (Utilitarian Digital Rights) are almost useless.

They cannot use it in exchange for the purchase of goods or services rendered within the coast of the country. It also prohibits payment via UDR. This also affects all financial institutions, exchange platforms, and operators in the country. 

They are mandated not to allow any dealing for anybody/party with digital properties, assets, cryptocurrencies, or their equivalents. The enacted law was proposed to the Russian Parliament chambers on the 7th of June by Anatoly Aksakov and was ratified on the 8th of July 2022. 

Before the proposition of the law, Russia has no law prohibiting cryptocurrencies and digital properties. However, the country placed an embargo on currency substitutes and upheld its rubble as its national currency. The bill does not ban/abhor the acquisition of digital currencies and assets, but it cannot be used as a form of payment.

The currencies/assets may be used for other applications and in international trades. Russia‘s economy seems to be having a hard time due to the sanctions placed on her after the war invasion of Ukraine.

Mixed Reactions About Russia’s Stand with Crypto

The stand of the country regarding cryptocurrency seems unknown and bleak. In January, President Putin declared support for Bitcoin mining. Putin stated that Russia saw the positive influence of cryptocurrency and digital properties, stable electricity, and economy. Which he revealed will leverage the progress of the country’s economy.

 Meanwhile, a crypto regulatory framework bill was proposed and enacted in 2021 by the parliament. The bill classified digital properties into two categories. DFA; this covered currencies, significant coins, and UDR; for other digital tokens.

The bill gave a green light for crypto in the country last year after it was enacted. The new turn of events seems shocking. However, the parliament promised to roll out a new crypto regulatory framework before the year runs out. 

Russia, the United States, and other powerful countries influence the cryptocurrency industry and world power. Despite the regulatory and policy structures being rolled out, the crypto space and industry waxing and soaring.

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