new law banning cryptocurrency

The Russian president Vladimir Poutine signed a new law that will ban the use of cryptocurrencies and other “digital assets” in the payment area – even though cryptocurrencies are already illegal in the country.

The use of cryptocurrencies as a means of payment was banned in January 2021, when Law 259-FZ (adopted by the State Duma in mid-2020) was officially adopted in Russia.

Source: Adobe / Aleksey Solodov

The new law, which comes into force at the end of this month, only strengthens law 259-FZ. However, it contains more details and removes some of the sometimes confusing and vague terminology used in the 2021 law.

The ban on payments in cryptocurrency is the only point that relates to the cryptocurrency, which Ministry of Finance and Central Bank agree. The Ministry, which has drafted a bill on the regulation of cryptocurrencies, would like to legalize this sector, while the Central Bank is in favor of a total ban. Legislators hope that now that the ban on cryptocurrency payments has been tightened, the two sides can find a compromise on cryptocurrency policy.

The new law specifically mentions investment tokens (“security tokens”) and utility tokens (“utility tokens”), which are explicitly prohibited as a means of payment. She adds that no “goods, work performed or services rendered” can be exchanged for cryptocurrencies or other forms of digital payment.

A leading Russian cryptocurrency blog, SelfInvestorz, noted that “experts agree that the new law will not have a significant impact on the market”, where cryptocurrency payments are a very small niche in Russia. Few, if any, Russian companies have launched initiatives related to this type of payments.

The blogger adds that the law will only “strengthen the role of the ruble as the only legal tender” in Russia.

And, writes the same blogger, this development is both “good news and bad news” for crypto advocates.

They added that the good news was that “regulation is always a warning of stability”, which can lead to “development of the industry.”

But the “bad news,” the blogger concludes, was that regulators would inevitably “attack” the industry and follow it up with “additional restrictions, barriers, bans, fees, commissions and taxes.”

Meanwhile, Russian psychologists are reporting an increase in the number of patients admitted for cryptocurrency and stock trading addiction.

Izvestia media reported that the rehabilitation center Dr. Isaeva in Moscow, an increase has been seen in cases showing signs of addictive behavior, such as “gambling”.

The clinic reported that the “average age of cryptocurrency addicts” is about 30 years old.

An expert at the clinic reportedly said that many addicts turned to cryptocurrency after losing large sums elsewhere and were no longer able to trade on the stock exchange.

The expert added that the behavior of drug addicts for crypto trading has many similarities with “alcoholics and workaholics.”

Leonardo Guevarapsychiatrist, narcologist and psychotherapist at Marshak Clinicexplained that stock trading addicts were more likely to turn to psychiatrists for help, while crypto trading addicts are more reluctant to seek help.

Guevara concluded that an “impulsive desire” to perform cryptocurrency-related “actions” causes some addicts to seek out the “feelings of euphoria and excitement” often associated with buying and selling tokens.

Follow our affiliate links:

  • Buying cryptocurrencies in the SEPA zone, Europe and French citizensvisit Coinhouse
  • Buying cryptocurrency in Canadavisit Bitbuy
  • To generate interest with your bitcoinsgo to the BlockFi website
  • To secure or store your cryptocurrenciesget Ledger or Trezor wallets
  • To trade your cryptocurrencies anonymouslyinstall the NordVPN app

To invest in cryptocurrency mining or masternodes:

To collect coins while playing:

  • In poker on the CoinPoker gaming platform
  • To a global fantasy football on the Sorare platform

Stay informed with our free weekly newsletter and to our social network:

Leave a Comment