Regulation
Russia Considers Legalizing Cryptocurrency Use for International Payments: Here’s Why
Russia set to legalize use of cryptocurrencies for international payments
Russia is now stepping up its regulatory efforts on the use of cryptocurrencies, according to the latest reports, a move that comes amid growing demand. international sanctionsthat impact business operations and financial transactions. The announcement comes as Bloomberg reported Earlier in the day, the Russian government was working on legislation that could make digital currencies a key part of getting around these financial barriers, underscoring a significant policy shift. previous restrictions.
Details of the legalization of cryptocurrencies
The State Duma, the lower house of the Russian parliament, is expected to consider draft laws on cryptocurrencies in its upcoming sessions. These include both general regulation of digital currencies and specific measures regarding cryptocurrency mining. In addition, the bills, which are expected to quickly pass through the legislative process, are expected to be signed into law by President Vladimir Putin. Poutine by September 1st.
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It is worth noting that this rapid advancement in digital currency legislation highlights a notable shift in Russia’s approach from skepticism to hesitant acceptance as a necessity driven by geopolitical pressures. Furthermore, the surge in cryptocurrency adoption is particularly notable as it follows the increased difficulties Russian companies have faced in executing international transactions due to heavy US sanctions related to the ongoing conflict in Ukraine.
The Russian Central Bank recently proposed a Total ban on cryptocurrenciesciting risks to financial stability. However, recent global and domestic developments have necessitated a reassessment of this position.
Anatoly Aksakov, chairman of the Duma Committee on Financial Markets, said:
Previously, there were concerns that the legalization of cryptocurrencies would create problems for the development of the domestic market. While cryptocurrencies can help Russia circumvent Western sanctions, their use is “an objective phenomenon and cannot be ignored.”
Notably, the legislative change is also seen as a response to President Putin’s call for the country to “not miss the moment” to regulate and Integrate digital financial activities inside and outside Russia, according to Bloomberg.
How would regulation be managed?
Aksakov, speaking on how cryptocurrency regulation will be handled, revealed that digital currency transactions, once legalized, will receive a structured framework that aligns them with foreign currency regulations in Russia.
This would potentially open up new opportunities for both large and small businesses. Aksakov added:
Companies involved in crypto and mining have been pushing for the law to be passed to ensure they can operate within normal legal frameworks and not fear official investigation.
The report also reveals that the immediate beneficiaries are likely to be major exporters able to meet the strict conditions set out in the new regulations.
Additionally, the Central Bank of Russia would play a role in overseeing these transitions, with other federal agencies also involved in monitoring and controlling the circulation of legalized digital currencies.
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