Decentralized cryptocurrencies will be considered a type of property, which should be reported for tax purposes and cannot be used to pay for goods and services.

This is one of the major aspects of the recent crypto bill signed by the Russian President Vladimir Putin.

The new bill will come into force in January 2021 and represents the first step towards a comprehensive legal framework which will be released with another bill which will be released soon.

The bill, approved by the country’s Parliament Duma, says companies can issue digital securities on a blockchain if they are properly registered with the Bank of Russia as issuers and satisfy certain criteria.

The law states that digital assets “are digital rights comprising money claims, ability to exercise rights under negotiable securities, rights to participate in equity of a non-public stock company and right to claim transfer of negotiable securities set in a resolution on the DFA issue,” Russian news agency TASS noted.

These assets can be sold, purchased, exchanged, and pledged. However, they cannot be used as a means of payment.