Putin signed a law on the use of Digital Financial Assets in international payments

By Rhod Mackenzie

On March 11, Vladimir Putin, the President of the Russian Federation, signed a law permitting the use of digital financial assets (DFAs) and digital rights in international payments.

This law enables international transactions through digital assets. It is important to note that the Bank of Russia has the authority to establish conditions for certain currency transactions involving digital assets and to prohibit their execution. Additionally, the agency has the right to request information about the beneficial owners of the individuals or entities who issued digital financial assets or are responsible for their issuance.

The new legal regulations will aid in resolving issues related to foreign trade payments amidst the anti-Russian sanctions.
On February 29, the Central Bank of the Russian Federation recommended that financial organizations identify transactions for the purchase and sale of digital currencies using accounts registered to fake individuals (drops). Recommendations have also been created to reduce such risks. It has been noted that the recommendations do not apply to central bank digital currencies and digital rights issued in accordance with Russian Federation legislation.

On January 30, the regulator's head, Elvira Nabiullina, stated that the Central Bank's digital ruble pilot was progressing as planned and that market interest was increasing. In November, Nabiullina stated that the regulator is technologically prepared for international operations with the digital ruble. However, the success of this endeavour is contingent on our partners.