Bill To Ban Digital Assets As Payment Passed The First Reading In The Russian Parliament

A bill proposed a week ago to the Russian Parliament’s lower chamber, the State Duma, was quickly passed through first reading.

iexclusivenews reports that if passed, it would make it illegal to use “digital financial assets” (DFA) to pay for products or services.

According to local media, the law, backed by Anatoly Aksakov, head of the State Duma’s Financial Markets Committee, passed with reservations on Tuesday.

This online news outlet understands that despite the fact that the letter says that DFA exchange managers must withhold any transactions. Involving the use of tokens as a monetary substitute. The prohibition could be lifted in circumstances “specified by federal laws.”

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What You Should Know

iexclusivenews Nigeria reports that previously, legal experts attacked the law for strengthening regulation of digital rights and tokenized assets.

One of the key conceptual issues is that the bill treats DFAs. Which are known as tokens rather than coins, as a payment method although they are typically used as security tokens.

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Another omission is the concept of “monetary surrogate”.  While the measure attempts to restrict the use of DFAs as a monetary surrogate. There is no clear definition of the latter in Russian law.

The measure also defines a “electronic platform,” which is roughly defined as a financial platform.

Investment platform, or information system through which digital financial assets are issued.

Electronic platforms would be recognized as subjects of the national payments system and need to register with the central bank.

Every significant DFA action — emission, circulation, exchange, and trade — would have its own registry.

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The current law on Digital Financial Activities went into effect in 2021.

State Duma passed the first reading of the DFA tax revisions in May 2022.

Separately, two other significant laws are making their way through the legislative process.

Meanwhile, iexclusivenews Nigeria reports that a measure titled “On Digital Currency”.

Would provide the overall regulatory framework for cryptocurrency. Whilst a bill titled “On Mining in the Russian Federation” would establish instructions for miners.