Russia’s central bank had laid out the proposed framework in December that would legalize and regulate cryptocurrency trading for both individuals and institutions. The new law also follows the deployment of the European Union’s (EU) most significant sanctions package against Russia in April, which specifically targets crypto. It includes a complete ban on providers and platforms established in that country.
“Russia is becoming increasingly reliant on cryptocurrencies for international transactions,” the EU said.
Russia’s new digital assets law oversees crypto mining activities, issuance and circulation of cryptocurrencies and the services provided by brokers, asset managers, trading platforms and clearing houses.
The law does not lift Russia’s longstanding prohibition on the use of crypto for payments of goods and services within the country. It also bans banks and others from advertising and promoting crypto payments.
However, it preserves several exceptions, including allowing digital currencies to be used for settlements under foreign trade contracts between Russian residents and non-residents, transactions involving mined cryptocurrency, payments required by digital asset platforms and settlements involving securities or other digital assets.
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