Some Russian officials now working on amendments that will permit the use of Bitcoin and cryptocurrencies as a contractual means of payment
Members of the State Duma are now working on amendments that will permit the use of Bitcoin and cryptocurrencies as a contractual means of payment. Digital financial assets are regarded as property under Russian law and the changes will legalize crypto payments between parties to a contract.
Some Russian officials want to allow Bitcoin and cryptocurrencies for payments under domestic contract law
According to information from Interfax, Russian lawmakers are said to be considering partially reversing the country’s crypto payments ban. Specifically, cryptocurrencies like Bitcoin do not currently represent a legal payment method in Russia. The planned amendments would allow cryptocurrency payments in Russia under contract law – meaning such payments can only be made with the consent of all parties involved.
Pavel Krasheninnikov, Chairman of the State Construction and Legal Affairs Committee of the Russian Duma, announced that the government is considering amending the civil law to allow cryptocurrency payments as a means of contract:
“We believe that it is necessary to make amendments to the Civil Code, the initiative is currently undergoing a necessary approval procedure. Currently, there is an understanding that digital currency is not legal as payment but this payment method, quite possibly, can be contractual.”
Krasheninnikov noted that while cryptocurrency is not a legal tender in Russia, the authors of the amendments believe that it can be used for payments within the framework of contractual law. Quoted by Interfax news agency, he added that digital currencies will not be treated as securities.
As previously reported, Russia enforced a ban on crypto payments this January, officially banning citizens from making and accepting cryptocurrency payments in the country.
Anatoly Aksakov, Chairman of the Russian State Duma Committee on Financial Markets, argued last year that the legalization of cryptocurrency payments essentially means the destruction of the financial system. Russia’s yet-to-be-launched central bank digital currency is poised to become the ultimate form of money and will become an integral part of national settlements by 2023 or 2024.
And while Russian companies and residents are not allowed to accept cryptocurrency, amendments to the Administrative Offenses Code that would introduce legal liability for such violations have not been filed yet. Тhe Finance Ministry has proposed an administrative fine in the range of 20 – 200,000 rubles ($ 2,700). However, the chairman of the Financial Market Committee, Anatoly Aksakov, believes the legal definition of digital currency needs clarification regarding the whole variety of currencies, including cryptocurrencies, stablecoins, and the digital ruble.
- Hong Kong Securities Regulator May Be Empowered To Prohibit Operations Of Licensed Crypto Service Providers
- India Forms Panel To Study The Possibility Of Regulating Cryptocurrency, Reconsidering India’s Comprehensive Ban Bitcoin