Russian President Vladimir Putin signed a law on the regulation of cryptocurrencies from 2021

Russian President Vladimir Putin signed the first of two bills on digital assets into law on Friday, according to Russian media outlet RIA on July 31.

Vladimir Putin signed a law that will allow transactions with digital financial assets (DFA) from 2021, but will ban cryptocurrencies as a means of payment in Russia.

The bill, approved by the country’s parliament last week, says companies can issue digital securities on a blockchain if they are properly registered with the Bank of Russia as issuers and satisfy certain criteria.

While the new bill bans crypto payments, Russian companies can now issue DFAs under approval from the Bank of Russia. According to the bill, these assets can function as a medium of exchange for another type of asset.

Commercial banks and fintech companies can also operate digital asset exchanges under license from the central bank as well. The Bank of Russia will reportedly monitor all such transactions in a dedicated ledger domiciled with the Apex bank.

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