Russia: Federal law on digital financial assets and digital currency signed into law

On 31 July 2020, the President of the Russian Federation signed into law the Law on digital financial assets, digital currency. The Act regulates the circulation of digital financial assets and digital currency in Russia. Under the Act, any entity involved in the issuing, accounting and transmission of digital financial assets will have to register and receive approval from the Bank of Russia before engaging in profit-making activities. Regarding Digital currencies, the act states that individuals cannot use such currency for settlements or as a means of payment. However, the act provides a framework under which individuals can transfer digital currency.