YEREVAN (CoinChapter.com) — Russia is taking steps to regulate cryptocurrency trading, with a framework expected by November. Anatoly Aksakov, Chairman of the Russian State Duma Committee on Financial Markets, made the announcement, indicating a significant change in the country’s approach to digital assets. Initially, the new regulations will allow a select group of organizations to participate in cryptocurrency trading.
Anatoly Aksakov Discusses Cryptocurrency Regulation. Source: pnp.ru
The Central Bank of Russia (CBR) and the Ministry of Finance are working together to prepare the legal framework. The entities involved must meet specific criteria to be part of the trading system. This cautious strategy reflects Russia’s broader plan to balance the growth of cryptocurrency with the need for financial control.
Cryptocurrency Will Be Used Exclusively for Foreign Trade
Russia’s new framework will restrict the use of cryptocurrency to foreign trade activities. Domestic payments with digital currencies will remain banned. This decision offers the country a way to work around international sanctions and improve its foreign trade options without relying on the U.S. dollar.
The introduction of cryptocurrency for foreign trade is seen as a strategic move. Russia aims to reduce its dependence on the Western financial system and avoid economic challenges. However, cryptocurrencies will not enter the domestic market, ensuring the government maintains control over internal financial activities.
Ministry of Finance Takes Lead in Cryptocurrency Regulation
The Ministry of Finance is at the forefront of shaping the regulatory framework, specifically focusing on utilizing cryptocurrencies for cross-border payments. Consequently, the Ministry has drafted laws that will ensure tight control over cryptocurrency trading.
At the same time, the Central Bank of Russia has adjusted its stance on cryptocurrencies. Previously against the idea, the CBR now supports the use of digital assets for foreign trade under strict guidelines. This shift in perspective reflects Russia’s growing need for financial alternatives.
Russia Implements Strict Cryptocurrency Trading Regulations
To mitigate risks, the Russian government will permit only a select few organizations to participate in cryptocurrency trading. These entities will operate on government-regulated platforms crafted to curb financial crime and stabilize the market.
Only businesses that demonstrate robust financial health and a solid track record in international trade will qualify. By initially limiting participation, the government aims to assess the regulatory impact and make necessary adjustments. Although the system could broaden over time, maintaining tight control over cryptocurrency trading remains a priority.
Moreover, Russia’s regulatory strategy might affect its international relationships. As other nations formulate their cryptocurrency policies, Russia’s approach could shape global trade strategies.
Details about how Russia’s system will integrate with others are still uncertain. However, this move aligns Russia with nations leveraging digital currencies for economic independence, marking a significant step in its financial strategy.
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