- Russia passes legislation to streamline cryptocurrency transactions and utilise it for international payments amid sanctions.
- The new laws include measures to legalise crypto mining and use cryptocurrencies in foreign trade, overseen by the Bank of Russia.
- This regulatory shift aims to boost Russia’s global crypto mining stature and ensure compliance with national security and financial regulations.
Russia has come a step closer to crypto regulation and utilisation as it continues to wrestle with international sanctions following the invasion of Ukraine. According to a report by Bloomberg, the State Duma has just passed a set of cryptocurrency bills last Tuesday.
Related: Report: Russia Ponders Crypto Use Amid International Money Transfer Challenges
The new laws would make it easier to send and receive cryptocurrency from and to Russia. The draft law, which is seen as experimental, could see a speedy approval by Senators in the Federation Council. President Vladimir Vladimirovich Putin is expected to then sign the law into effect by 1 September according to Anatoly Aksakov, head of the Duma’s financial market committee cited by Bloomberg.
Russia Embraces Crypto After Earlier Reluctance
Aksakov explained that the use of cryptocurrencies, which could help Russia evade Western sanctions, is an inevitable phenomenon that regulators cannot ignore, despite earlier hesitation.
Previously, there were fears that the legalization of cryptocurrency could create problems for the development of the domestic market.
Anatoly Aksakov, Head of the Duma’s financial market committee Russia has been gradually warming to the idea of using crypto for cross-border payments, after being rather hostile to the asset class in the past.
Ria Novosti reports the bill allows cross-border settlements and exchange trading of digital currencies under experimental legal regimes (EPRs).
The Bank of Russia will regulate these activities and monitor risks, including those related to national security and financial crimes. The law also permits cryptocurrency use in foreign trade payments and enables the Bank of Russia to create an electronic platform for cryptocurrency transactions.
Bill to Include Legalisation of Mining, Challenge US Position
The initiative is actually a set of two bills, the first deals with the crypto mining sector while the second relates to the international transfers.
Russia has the world’s second largest capacity for crypto mining and intends on extending this to surpass the United States, said the co-author of the bill, Deputy Chairman of the Committee on Information Policy, Information Technologies and Communications Anton Gorelkin.
Today, Russia ranks second in terms of mining, and I am sure that after the regulation of this sphere appears, we will come out in the first place, overtaking the United States.
Anton Gorelkin, Deputy Chairman of the Committee on Information Policy, Information Technologies and Communications The bill now allows ordinary citizens to engage in mining activities, but will still include the ban on advertising for mining. Gorelkin said this was “due to the growth of fraudulent schemes that involve people”.
Related: Bitcoin Adoption Accelerates as Michigan State Pension Fund Snatches up $6.6 Million in BTC
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