Putin condemns crypto payments in Russia
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President Putin - Foreign policy
President Putin – Foreign policy

Bullet point: Putin has signed a bill to outlaw crypto payments in Russia.

The president of Russia, Vladimir Putin has signed a bill that bans and condemns the passing of digital financial assets as payments into law.

This was originally initiated in the country’s lower house Parliament about a month ago.

Putin’s latest move has been seen as a big challenge to the crypto space as he has amended Russia’s long-standing prohibition on cryptocurrency payments to include additional sorts of tokens.

This ban is coming from the months-long standing debate in the Russian government and central bank regarding digital currencies. 

Putin’s signature will be upsetting to the $940 billion asset class in the world’s 11th-largest economy.

The new heat is worrisome but the tenacious ruble remains the sole legal tender in Russia.

According to reports, the Russian State Duma confirmed that President Putin signed a bill halting certain parts of an existing federal law “on banks and banking activities.”

The above means that individuals will stop using cryptocurrencies to buy products and services.

A part of the bill, passed on June 7, revealed that:

Prohibiting the introduction of other monetary units or monetary surrogates in the Russian Federation.

Still, On June 7, the Russian State Duma’s Aksakov submitted an amendment that reveals the ban of all security tokens, utility tokens, and non-fungible tokens (NFTs) as a payment method in the country.

On June 8, the Duma speaker gave his approval for the bill, while the upper chamber of the Parliament, the Federation Council, approved it.

Btw, the two chambers must pass all proposed legislation before the bill is finally signed into law by Vladimir Putin.

What to expect from this

This legal decision and development from President Putin put all Russians into crypto at a big risk. This is because some desperate Russians ran into crypto because of the earlier conflict the country had with Ukraine.

This will be a shock to the crypto-savvy residents of Russia.

In the world at large, this news might have nothing to do with the crypto space as the crypto ecosystem has survived even with more reckless sanctions or bans.

However, halting crypto payments in Russia will be heat and all fingers are crossed.

Also read: John McAfee’s ICO Partner banned by SEC.

 

 

By Meekness Nnoka

Blockchain Analyst & Writer with top-notch Technological background. Enjoys reading and writing fascinating crypto contents. 4 years content creating experience.

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