Amid the news that the cryptocurrency industry is ushering in a new round of bull market, Russia has recently passed two important cryptocurrency-related bills, which can be said to be a positive response to this bull market wave.
According to the head of the Russian Central Bank, Russia will begin allowing international payment settlements via cryptocurrencies by the end of the year. At the same time, Russia has also officially legalized cryptocurrency mining, injecting new vitality into the entire cryptocurrency ecosystem.
Legalization of cryptocurrency mining
Starting from November 1, 2024, cryptocurrency mining will be fully legalized. This means that Russia officially defines cryptocurrency mining as an economic activity, which will provide a legal and compliant environment for cryptocurrency mining. In the future, Russia hopes to attract more mining practitioners to conduct business in Russia through this move.
It is reported that miners can legally engage in mining business under the premise of meeting certain requirements. It is clearly stated that only Russian legal entities and individual entrepreneurs listed in the register of the Ministry of Digital Development are eligible to engage in mining business; as for ordinary Russian citizens, if they do not exceed the electricity consumption limit set by the government, they can also mine without being included in the register.
The report pointed out that cryptocurrency mining activities will be supervised by the Russian Federation government and the central bank, and the cabinet will formulate requirements for miners, including the nature and scope of their services. In addition, the government also has the right to ban mining in specific areas and set energy consumption for mining activities.
The law also stipulates that miners must report digital currency information and addresses obtained through mining to government authorized agencies, and in order to maintain Russia's monetary stability, authorized agencies and the central bank will have the right to impose bans or restrictions on digital currency transactions.
During the second reading, the State Duma approved several amendments, including the removal of the clause prohibiting the organization of digital currency circulation in Russia, but also introduced a ban on cryptocurrency advertising. The law containing other amendments will enter into force 10 days after its official publication. At the same time, most of the regulations on mining will take effect on November 1.
Analysts believe that the Russian government's move is not only to seize the development opportunities of the cryptocurrency market, but also reflects its recognition and support for cryptocurrency technology. With the implementation of this policy, it is expected that Russia's cryptocurrency ecosystem will show a booming development trend in the future.
Digital Currency Cross-Border Payment Law
From September 1, 2024, cross-border settlement and exchange transactions of digital currencies will be allowed within the framework of the "Experimental Legal Regime (EPR)". Although Russia currently prohibits people from using cryptocurrencies as a means of payment within the country, after the new law comes into effect, companies approved by the Russian Central Bank will be able to use cryptocurrencies for payment settlement in international trade activities.
It is reported that the bill is mainly aimed at companies with large trade surpluses, giving them the right to use cryptocurrencies in cross-border trade. On the one hand, this can help companies avoid exchange rate risks, and on the other hand, it may also promote the popularization and application of cryptocurrencies in Russia and around the world.
In addition, the Central Bank of Russia has also created a digital currency trading platform based on the National Payment System (NPS) within the framework of the EPR. Elvira Nabiullina, Governor of the Central Bank of Russia, said that the country expects to conduct its first trial of cross-border payments using cryptocurrencies by the end of this year to overcome the difficulties brought about by Western sanctions.
The introduction of this policy undoubtedly lays the foundation for the application of cryptocurrency in international trade. Analysts believe that this move will further promote the widespread use of cryptocurrency around the world, and is expected to drive more countries and regions to follow suit, accelerate the pace of regulatory upgrades, and ultimately help the cryptocurrency market regain its bull market.
However, it should be pointed out that both bills are still in the pilot or experimental stage, and the relevant specific implementation details need to be further improved. But it can be seen that Russia is boldly "betting" on cryptocurrency and actively creating a favorable development environment for this emerging technology.
It is worth mentioning that while Russia introduced the above cryptocurrency policy, the US government is also closely following the development trend of the cryptocurrency market. It is reported that the US government is studying the possibility of incorporating Bitcoin into the national foreign exchange reserves to better cope with the current inflationary pressure.
Analysts believe that if the plan is finally implemented, it will not only bring strong upward momentum to the price of Bitcoin, but will also add an important stepping stone to the popularization and application of Bitcoin around the world.
In general, the "cryptocurrency moves" of the two major economic powers, Russia and the United States, have undoubtedly injected strong momentum into the current "bull market" in the cryptocurrency market. Not only that, these moves have once again confirmed that cryptocurrency is becoming an indispensable part of the future international financial system.
For investors, this is a great opportunity to pay close attention to. Bitcoin, Ethereum and other leading cryptocurrencies will undoubtedly be the biggest beneficiaries. In addition, some emerging cryptocurrencies with good fundamentals and development potential are also worth paying attention to. In short, although the volatility of the cryptocurrency market is still large, as long as investors seize major trend opportunities, they can still expect to reap rich returns in this bull market.
