On July 22, the Russian State Duma passed a bill titled “On Digital Financial Assets” in its final third reading. Importantly, Russia passed a major bill connected with cryptocurrencies.
It is worth mentioning that Russian authorities finally agreed to provide legal status to cryptocurrencies. Interestingly, following this decision, the “On Digital Financial Assets” bill or DFA is expected to be officially adopted in Russia on Jan 1, 2021.
Let’s have a look at this bill. This bill provides a legal definition of digital assets. Moreover, it provides the legal status of cryptocurrency trading in the world’s largest country. People should take into consideration that the “On Digital Financial Assets” bill prohibits the use of cryptocurrencies like Bitcoin as a payment method.
Russia and cryptocurrencies
Importantly, the DFA bill provides the foundation for Russia’s cryptocurrency legislation. However, the regulation of the industry will mainly be a part of a different bill. According to the latest report, the bill titled “On Digital Currency”, or DA, will play the most important role when it comes to cryptocurrencies.
Based on this information, the State Duma expects to pass the “On Digital Currency” bill during the autumn session. The autumn session ends in late December.
However, it is too early to say how this bill will define the role of cryptocurrencies. For example, some industry players are confident that the latest DFA bill should not be treated as the actual green light to crypto. The State Duma passed the bill on July 22 and people should regard it as a glossary to crypto. The “On Digital Currency” bill is more important, overall. Thus, the fate of cryptocurrencies in the Russia Federation depends on this bill.
Interestingly, as part of the new legislation, the Bank of Russia will reportedly become officially authorized to oversee the activity connected with the issuance of digital currencies in the country. Moreover, the bank will be able to impose additional requirements on crypto issuers and cryptocurrency exchanges.