A “Digital Assets” usage ban in international payments is imminent before the Russian Parliament


Firms in Russia will be able to employ “digital financial assets” in the international payments area if lawmakers in the country pass new laws this week.

Even though many Russian companies are currently trading with foreign partners using tokens like Bitcoin (BTC), the proposed regulation does not include crypto, according to RBC.

On February 21, the State Duma Committee on the Financial Markets gave its approval to fresh revisions to the proposed bill.

The lower house of parliament has given the measure its first reading, and the Senate must now approve it after a second reading.

As stated in the proposed changes, “the usage of digital assets in international trade transactions between citizens [of Russia] and non-residents would be legalized.”

Traders should be able to “make use of these assets in contracts and transactions,” according to their proposal.

Politicians have historically referred to Bitcoin, altcoins, CBDCs, stablecoins, and digitized commodities as “digital assets” or “digital financial assets” (DFAs).

Anatoly Aksakov, chairman of the committee, has dropped hints that lawmakers in Russia are starting to use the term “DFAs” to describe digital fiats like the digital ruble and controlled stablecoins issued by banks.

Legislators are also referring to digital commodities and securities by this name. They often call Bitcoin and similar tokens “cryptocurrencies” or “private cryptocurrencies.”

Before the bill’s second reading at the Russian parliament’s plenary sitting on February 27, Aksakov expressed his desire for MPs to move quickly on the matter. On Telegram, Aksakov wrote:

“Russian importers and exporters will be able to collaborate more actively with friendly nations via the use of digital assets in international trade operations.”

Additionally, the lawmaker said that the proposed measure would “somewhat offset” the negative effects of Western sanctions on Russia’s economy.

While the conflict in Ukraine rages on, many countries, including the United States, the European Union, the United Kingdom, and others, have imposed further sanctions on Russia.

But Moscow says it can eliminate dollar-denominated trading with its accelerated digital ruble scheme. Belarus and Kazakhstan, two important Russian allies, are also increasing their CBDC activities. Also, Moscow has said that its currency may work with China’s digital yuan.

However, experts have voiced concerns over the proposed legislation. Regarding “the usage of digital assets in international payments,” Maria Telegina of the Moscow Digital School warned that “technical hurdles” would be a problem.

“The measure does not in any way address concerns relating to the usage of crypto for overseas payments,” Telegina pointed out.

Also Read: Crypto Will Be Recognized as Property for Legal Protection in the United Kingdom

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