Crypto Payments Prohibited Declares Russian Minister

Cryptocurrency Europe Regulations Russia
Russian PM Medvedev (left) and Russian Minister of Justice Konovalov have recently had their say on the state of cryptocurrencies in the country.

Russia’s Minister of Justice, Alexander Konovalov has confirmed that cryptocurrencies are categorically prohibited as a means of payment by the country’s constitution and other laws regulating Russia’s finances.

Konavalov cited article 75 of Russia’s constitution which gives the sole right of issuing a legal tender in Russia to the country’s reserve bank and added that other types of currencies beyond the Russian rouble are illegal.

The minister continued, adding that regulations for cryptocurrencies are not to be expected soon and that digital assets are covered by current laws, under which they are classified as “other property”.

Notably, he also added that a clear definition of cryptocurrencies is “no necessary” (sic!).

At present, Russia not only lacks regulations but even a defined stance on cryptocurrencies. During the economic Gaidar Forum held January 2019 the country’s Prime Minister Dmitry Medvedev expressed an opinion that cryptocurrencies deserve attention, despite a sharp drop in their market’s value.

Around the same time the head of Russia’s State Duma Committee Financial Market, Anatoly Aksakov, announced that an unspecified number of bills on Russians digital economy are planned and a local news agency TASS revealed that the usage of cryptos in financial transactions may also be codified.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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