Vladimir Putin signed a document “on digital financial assets”

The President of Russia signed the law on CFA, which legalized cryptocurrency, but prohibited its use onthe territory of Russia.

Putin signed a law on the regulation of cryptocurrency transactions in the country, introducing the concept of "digital currency" and "digital financial assets" into the legal framework.

The law allows businesses to produceregulated tokens on private blockchains and does not regulate the circulation of decentralized cryptocurrencies and mining. These concepts will be defined in a separate law, which is now being developed and, possibly, will be submitted to the autumn session of parliament.

The document authorizes transactions withcryptocurrency exclusively to Russian credit organizations and exchanges registered in a special register of the Central Bank. The Central Bank acts as the main regulator of cryptocurrency circulation in the country. It also determines which digital assets will be allowed to be issued and available to qualified investors. Ordinary citizens will have very limited rights to purchase cryptocurrency and the amount of transactions with it.

The document defines cryptocurrency asmeans of payment, savings and investment. At the same time, the country is prohibited from using digital assets to pay for goods and services. Moreover, the dissemination of information (advertising) about the sale of goods and services for cryptocurrency is prohibited by the new law.

Experts note that the new bill is notwill withdraw cryptocurrencies in Russia from the "gray zone". Rather, on the contrary, it will give more powers to the judicial system to pressure the crypto industry, which could lead to the fact that most crypto companies will go into the shadows or change jurisdiction.

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