On Wednesday, July 22, the State Duma passed the law on digital financial assets (DFA) and digital currency. The document will make it possible to conduct transactions with CFA from January 1, 2021, but at the same time it will prohibit cryptocurrencies as a means of payment in Russia. The corresponding draft law was developed by a group of deputies and senators headed by Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market.

“We took into account the needs of the business. We have been repeatedly approached by entrepreneurs with a request at the legislative level to authorize the use of secured financial digital assets in their turnover. Therefore, the main task of the law is to provide a legal opportunity for the wider use of digital technologies in financial settlements. The law sets the official rules of the game in this market, "Aksakov said in an interview with RT.

According to the bill, digital rights are digital rights that are issued, recorded and circulated in the information system. Digital assets can be an object of collateral, exchange, purchase and sale transactions, but they are not a means of payment.

Thus, the Russian financial market will receive a new instrument for investment, which may have a positive effect on the economy as a whole, Anatoly Aksakov believes. According to him, businesses will have the opportunity to organize cooperation and deepen trade ties with their foreign partners using digital assets.

“Moreover, citizens will also be able to buy digital assets from credit institutions. But there is a condition: if the asset was not issued within the framework of Russian legislation, then it will not be possible to purchase it from our credit institution. Digital assets issued outside Russian law can only be purchased on foreign sites, ”the deputy added.

In turn, the law defines digital currency as a set of electronic data in an information system. As Aksakov explained, cryptocurrencies are a means of payment, as well as a tool for investing or storing money, but they cannot be used to pay for goods and services in Russia.

“Digital currency cannot be used to pay for any goods and services due to the fact that its legalization creates an alternative to the Russian ruble. Within the framework of the legislation, the ruble was and remains the only legal means of payment in Russia. Initially, we did not consider the idea that the cryptocurrency can stand on a par with the ruble. There was no such task, ”Anatoly Aksakov explained.

In many ways, the ban on the use of digital assets in Russia as a means of payment is due to the desire of the authorities to minimize the risks of financial fraud with cryptocurrencies. This point of view in a conversation with RT was expressed by Alexey Korenev, an analyst at FINAM Group.

“If digital assets are allowed to be used as a means of payment, there will be many loopholes for tax evasion, abuse, as well as illegal cash withdrawal and transfer of funds abroad. Moreover, the impossibility of tracking payments allows cybercriminals to finance terrorist organizations, ”the expert noted.

At the same time, the adopted law will clarify the concept of digital assets and cryptocurrencies, says Konstantin Korishchenko, Head of the Department of Stock Markets and Financial Engineering at RANEPA. According to him, in the future, business and citizens will have a better understanding of how exactly they can interact with the CFA.

“Digital financial assets had to be legalized for this concept to exist legally, because, for example, the courts have been hearing cases related to CFA for several years. This issue had to be settled, including for legal practice. In addition, CFA are gaining more and more popularity around the world. Cryptocurrency creators argue that digital money is not controlled by states, unlike traditional national currencies. It was necessary to clarify this issue, ”the expert added.

Digital fever

Recall that cryptocurrencies caused a global stir in the second half of 2017. Then, from July to December, bitcoin - the most popular electronic coin - rose in price almost 10 times, to $ 20 thousand, and entered the top five largest currencies in the world. However, already at that moment, against the backdrop of the rapid rise in prices for cryptocurrencies, many economists began to seriously warn about the threat of another financial bubble. 

As a result, experts' fears were realized, and 2018 will be remembered for the sharp collapse of the cryptocurrency market. From January to December, bitcoin fell by almost 80% - from $ 20 thousand per coin to the level of $ 3-4 thousand. companies, as well as the withdrawal of funds by large investors in real money.

However, in 2019, the market revived again, and the bitcoin rate almost doubled - from $ 3.7 thousand to $ 7.3 thousand.Since the beginning of 2020, the electronic coin has risen in price by almost 30% and is currently traded near the $ 9.3 thousand mark