Russia Bans Anonymous Crypto Wallet Deposits

Russia has banned all cash and crypto deposits into anonymous e-wallets as the latest push to curb the illegal financial activity.

04 August, 2020 | AtoZ Markets – Cryptocurrency in Russia has been the subject of debate for years whether the country will legalize it or creates clear regulations for cryptocurrency companies. However, in April, the country postponed its crypto law adoption due to the coronavirus after facing multiple delays.

Earlier this week, A new bill regulating Russian cryptocurrency has been signed by President Vladimir Putin. The new law gives cryptocurrency legal status but prohibits anonymous deposits into online wallets. This new crypto law will come into effect on January 1, 2021.

The new bill gives cryptocurrency the legal status and means that cryptocurrencies like Bitcoin can be sold, bought, and exchanged. Decentralized cryptocurrency considers as a type of property that needs to be reported for tax purposes. Banks and crypto exchanges must register with the Russian Central Bank if they want to act as digital currency exchange.

Russia Restricts Anonymous Crypto Deposits

Russia banned anonymous cash and crypto deposits on e-wallets platforms, which means that users only have to top up with a bank transfer and have to verify their identity by linking their bank account. It will allow the authorities to know the source of the money.

“Digital currency recognize as an aggregate of electronic data capable of accepting as the payment means, not being the monetary unit of the Russian Federation or a foreign state, and as investments. The digital currency cannot be used at the same time to pay for any goods and services.”

The country had strong concerns about cryptocurrencies used to finance terrorism and money laundering. This new law adoption will also curb illegal activities. “These changes are to minimize the risks of transactions with anonymous cards and electronic wallets,” said the country’s central bank.

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