Gradually promote the legalization of cryptocurrency
Russia’s regulatory push in the cryptocurrency industry is gradually accelerating, and it plans to complete the formulation of relevant regulations by November. According to Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, the Central Bank of Russia and the Ministry of Finance are preparing the necessary regulations that will regulate the use of cryptocurrencies in cross-border payments.
On September 1 this year, Russia passed a new law allowing cryptocurrencies to be used for foreign trade payments. However, this regulation requires further details and additional provisions to ensure that cross-border payment mechanisms can operate smoothly. Aksakov said pilot operations would initially be conducted with a number of designated players, including banks and financial institutions, to help the government better understand how to regulate the new market.
Crypto payments that facilitate cross-border trade
As part of the regulatory push, Russia plans to adopt an “experimental legal system” that will first allow a limited number of participants to experiment with cryptocurrency payments. The purpose of this stage is to reduce risks and ensure that the market is not exploited by criminals. Aksakov emphasized that over time, the range of participating institutions will expand and more trading platforms will emerge to meet market demand.
According to Aksakov, Russian companies are already making cryptocurrency payments, mainly for import and export trade, and the transaction volume has reached billions of dollars. He added that the number of participating financial institutions will be limited initially to better understand market dynamics and thereby develop effective regulations to protect the market from fraudulent practices.
"We must prevent the market from being penetrated by dishonest players," said Aksakov, who also mentioned that cryptocurrencies can be used not only to pay for basic goods, but also for the illegal purchase of weapons or drugs, which is why in the early stages of Reasons for restrictive measures.
Cryptocurrency in foreign trade payments does not involve domestic payments
It is worth noting that although Russia promotes the use of cryptocurrencies in foreign trade payments, it has no plans to fully replace the Russian ruble with cryptocurrencies. Aksakov emphasized that cryptocurrencies will only be allowed for cross-border trade and not payments within Russia.
"Cryptocurrency is not allowed as a means of payment in the country. It will only be used for foreign trade transactions, and this process must be regulated. In my opinion, cryptocurrency should be regulated like foreign exchange," he added.
This decision is also consistent with the long-term goals of the BRICS group of countries to which Russia belongs. Members of the group have been working to challenge the global dominance of the US dollar and explore digital assets as an alternative for cross-border settlements. As one of the founding members of the BRICS, Russia has recently revealed plans to launch a BRICS stablecoin linked to the yuan to promote de-dollarization efforts.
Further reading
No wonder Russia loves cryptocurrencies! Relying on mining to increase tax revenue of more than 500 million magnesium and successfully evade sanctions?
Is a new cold war coming? The United States and Russia compete for "digital arms". Why is cryptocurrency the focus?
