Russia Considering Ban On Payments For Goods, Services In Digital Currencies - Lawmaker

MOSCOW (Pakistan Point News / Sputnik - 20th July, 2020) The draft law on digital financial assets defines cryptocurrency, but prohibits the use of it in Russia to pay for goods and services, Anatoly Aksakov, the chairman of the Russian parliament's lower house's financial market committee, told Sputnik.

The bill "On digital financial assets, digital currency", which was prepared for the second reading in the State Duma, defines digital Currency as a set of electronic data (digital code or designation) contained in the information system, which are offered and (or) can be accepted as a means of payment which is not Russian, foreign and (or) international monetary or settlement unit, and (or) as an investment and for which there is no entity obligated to each holder of such electronic data.

"What is cryptocurrency? We need to define it, we define it, that it is a digital code that is used as a means of payment and as a means of savings, as an investment. But at the same time, in Russia, this means of payment is prohibited to be used to pay for goods and services," Aksakov said.

According to the draft law, Russian citizens and companies will be able to challenge cryptocurrency transactions in court only on the condition that they have been declared in Russia.