The President of Russia Vladimir Putin has signed Russia’s bill to regulate cryptocurrencies into law.

With the new law, cryptocurrency has legal status, but cannot be used as a form of payment.

The Russian media, RIA Novosti, reported that the State Duma in Russia approved the law, and it will be enforced on Jan. 1, 2021.

Here’s how the law defines cryptocurrency:

“Is recognized as an aggregate of electronic data capable of being accepted as the payment means, not being the monetary unit of the Russian Federation or a foreign state, and as investments.”

Further, the law says:

“Digital financial assets are digital rights comprising money claims, ability to exercise rights under negotiable securities, rights to participate in the equity of a non-public stock company and right to claim transfer of negotiable securities set in a resolution on the DFA issue.” 

Moreover, the law clearly says that these assets can be sold, purchased, exchanged, and pledged. However, they cannot be used as a means of payment.

This decision comes just a couple days after Iran decided to authorize power plants to mine bitcoin.

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