A Law on digital financial assets and digital currency has been signed in the Russian Federation

President of the Russian Federation Vladimir Putin signed Federal Law No. 259-FZ of 31.07.2020 "On Digital Financial Assets, Digital Currency and on Amendments to Certain Legislative Acts of the Russian Federation".

The new law regulates the turnover of digital financial assets and digital currency. Digital financial assets are understood as digital rights, which include monetary claims, the ability to exercise rights to securities, the right to participate in the capital of a nonpublic joint stock company, and the right to demand the transfer of securities, which are stipulated in the decision on the issue of digital financial assets.

The law uses another term - "digital currency" instead of "cryptocurrency".

Turnover of digital financial assets is supposed to be effected through the intermediary of operators of the information system where digital financial assets are issued and operators of exchange of digital financial assets (both types of organizations are included in the number of subjects of primary financial monitoring, the list of which is contained in Article 5 of Federal Law No. 115-FZ of August 7, 2001 "On Combating Money Laundering and Terrorism Financing").

The requirements of the law also apply to the deposit of cash into e-wallets.

There is a ban on accepting payments for goods, works and services in digital currency. It concerns, in particular, Russian legal entities, as well as individuals actually staying in Russia for at least 183 days within the next 12 consecutive months.

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