While May considers potentially legalizing crypto payments, Russia has already signed a ban on crypto payments.
Despite multiple leaks from Russian officials to the media suggesting a possible relaxation of restrictions on digital assets and the legalization of cryptocurrencies as a payment tool since facing international sanctions, the Russian parliament passed the Digital Assets Law on July 8, prohibiting domestic digital asset payments. President Putin also signed the bill on July 16. However, similar to the country's historically inconsistent cryptocurrency regulatory framework, the situation remains uncertain.
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The bill was initially drafted in 2020 as the Digital Assets Act, and has since undergone multiple revisions. The regulation states:
Unless otherwise provided by federal law, the transfer and acceptance of digital financial assets are prohibited and may not be used as a means of payment for any goods, services, products, or projects.
In 2019, the Russian Ministry of Finance drafted a federal bill on the circulation of cryptocurrencies, discussing the possibility of opening cryptocurrency trading. However, in January of this year, the Bank of Russia called for a complete ban on cryptocurrencies, citing environmental concerns, recommending the cessation of domestic Bitcoin mining activities, and prohibiting the purchase of Bitcoin.
In a contradictory move, Russian President Putin mentioned Russia's surplus electricity and related professionals in late January during a video conference with government officials, highlighting Russia's competitive advantage in mining activities.
In April of this year, Elvira Nabiullina, the Governor of the Bank of Russia, changed her stance and acknowledged the need for the central bank to relax strict restrictions on digital assets, believing that taking a tough stance on digital assets may make it difficult to attract funds and maintain a strong economy.
In May, Russian Minister of Industry Denis Manturov stated that cryptocurrency may be legalized as a payment tool, with the only question being when and how this will happen, and how it will be properly regulated.