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Vladimir Putin Signs Law Banning Crypto as a Payment Method in Russia

Tyler Irvin

Summary: Russian President, Vladimir Putin, has signed a new law banning digital assets as payment methods across the Federation, according to a policy amendment on Thursday.  The law approved on July 8, by the Russian Assembly, also known as the Duma, bans the use of digital securities and utility tokens as payment methods for goods and ...

Russian President, Vladimir Putin, has signed a new law banning digital assets as payment methods across the Federation, according to a policy amendment on Thursday. 

The law approved on July 8, by the Russian Assembly, also known as the Duma, bans the use of digital securities and utility tokens as payment methods for goods and services in the Russian Federation. 

This new law is an update to the July 2020 digital asset law, which labeled cryptocurrencies as a form of property and not applicable as a payment method. The 2020 law eased previously introduced versions of the law which classified crypto as an illicit activity in all forms. 

This announcement by Putin comes several months after Russia’s Ministry of Finance introduced a bill to parliament that would regulate cryptocurrencies in the country. The bill suggested that Russia and Putin see value in crypto mining and do not want to eliminate mining activities from the country, but rather tax and regulate it. 

The sentiment expressed by Putin and his regime drastically differs from the Russian Central Bank’s attitude towards digital assets, which has pushed for a ban on all crypto activity. 

Russia has come under fire this year for its alleged cryptocurrency uses. Some believe that Russia is circumventing the strict sanctions imposed on the Federation by using cryptocurrency. On the other hand, Ukraine has taken full advantage of crypto and its uses by raising $60 million in a variety of digital assets including BTC, ETH and stablecoins, according to a Coindesk report

Extremely popular social media crypto personality, WendyO.eth, voiced a bit of frustration on twitter following the report that said Putin banned cryptocurrencies as payment methods in Russia. 

“Why is it that every other country in the world can introduce some form of “digital asset” regulation but the USA cannot?,” she said. “I am not saying I agree with the law.” 

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While the U.S. government hasn’t explicitly defined crypto regulations nationwide, Securities and Exchange Commission (SEC) chair Gary Gensler recently claimed that crypto exchanges are in fact regulated by the SEC and should follow traditional finance regulations. 

Author: Tyler Irvin

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