Last July 22, the government of Russia formally acknowledged cryptocurrency as a legitimate financial asset. The legislative house approved the “On Digital Financial Assets” bill officially legalizing cryptocurrencies like Bitcoin. It will take effect on the first day of January 2021.
The passage of this bill will grant more freedom in trading via cryptocurrency and gives a clearer definition to it being an actual asset digitally and financially in the country. The limitation though, is that it still cannot be used for payment and any other kind of transaction. The draft was first submitted back in March 2018.
The DFA bill is merely set as a basis for the legislation, while the details of the implementation will be laid out in a separate bill with the title “On Digital Currency.” It is expected to be passed late December. This new law will approve issuance of stablecoins - a less volatile form of cryptocurrency that can be likened to an actual currency such as the US dollar. This form is less likely to be subject to the unpredictability of Bitcoin, but exhibits a similar security and real-time monitoring and adjustments.
While this may shed a light of hope for the cryptocurrency industry, some people are still not convinced that it is a step to that direction. Rumors of a Bitcoin ban in Russia circulated the internet, but was not obviously realized.
The central bank of Russia will be the agency responsible for overseeing the status of the new financial concept and all the activity that involves it. The Bank of Russia also has the power to require essential requirements for traders and issuers, and establish guidelines and policies for the acquisition of assets. Cryptocurrency investments in Russia is predicted to grow exponentially now that it has been accepted by the government.