Is it permitted to pay for goods and services with cryptocurrency?

Pursuant to Clause 5, Article 14 of Federal Law No. 259-FZ, digital currency may not be used as a means of payment within the territory of the Russian Federation. The wording of the law imposes a prohibition specifically on the acceptance of cryptocurrency as payment for goods, works, and services, thereby rendering it unlawful for a seller or service provider to accept such form of settlement. The act of making payment in cryptocurrency by the purchaser is not explicitly prohibited; however, any such transaction will in any event be deemed invalid in the part relating to the form of payment. At the same time, the law does not apply to transactions conducted outside the territory of the Russian Federation. This means that payment in cryptocurrency to foreign counterparties is not prohibited. However, in such cases, it is important to consider currency regulation, tax implications, and the legal requirements of the relevant foreign jurisdiction.