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The ban is a component of a broader invoice to the online currency, also known as Digital Financial Asset Transactions (DFA). The bill gives cryptocurrencies a legal prestige in the country and means that cryptocurrencies like Bitcoin can be sold, bought and exchanged.
Russian banks and financial exchanges would possibly also take part in the sale and acquisition of cryptocurrencies, but they will have to register with the Central Bank of Russia.
However, they will be used as a means of payment to buy anything.
Although recently signed, the law is expected to take effect until January 1, 2021.
It is also understood that the amount of cryptocurrencies in flow in Russia will be limited, according to Russian news firm RIU.
In Russia, cryptocurrencies are now considered a form of ownership and disclosed for tax purposes.
In addition, the Russians will challenge cryptocurrency transactions in court, but only if they claim their own ownership of the cryptocurrency.
The invoice states that virtual monetary assets are identified as “virtual rights that aggregate monetary claims, the ability to exercise rights in marketable securities, equity rights of a limited private company, and the right to claim the movement of marketable securities explained in a solution in the ADFA Problem.”
With regard to the exchange of virtual assets through banks, he said, “The central bank has the strength to log in to data systems and virtual monetary asset exchange operators and to monitor the activity of data system administrators.”
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Anatoly Aksakov, head of the Russian Duma committee on the money market, told RIA that the cryptocurrency bill can be followed in the fall of this year.
This will describe a deeper regulation of virtual currencies and their concepts.
The existing invoice mentions any term related to the cryptocurrency, such as “extraction”, the procedure through which Bitcoins can be created and obtained.
Analysts note that the new law signed this weekend appears to be a less serious edition of the proposal in the past.
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This would have made it illegal for the cryptocurrency industry in Russia, but provoked outrage from the cryptocurrency network, which sent several letters of protest.
The proposal was also criticized through the Russian Ministry of Justice and the Ministry of Economic Development.
Bitcoin, the largest form of cryptocurrency in terms of market, fell in value over the weekend, wasting more than $1450 in less than an hour on Sunday.
The price tumble followed a sharp rise in price towards the end of last week, according to price indexes.
Between July 27 and August 2, the value of the cryptocurrency increased from approximately $9,985 consistent with Bitcoin to a maximum of 11 months of just over $12,100.
However, it fell to $10,659 in the early hours of Sunday morning, according to the Coindesk index.