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The Russian parliament has passed a bill allowing the use of cryptocurrency for international trade and legalized crypto mining. This legislation aims to facilitate international transactions that have been hampered by Western sanctions and regulatory pressures on local banks. By using crypto, certain industries will be able to bypass specific trade regulations.
Russia has faced interruptions in global transactions with key trading partners like China, India, the United Arab Emirates, and Turkey. Local banks have been exercising increased caution due to pressure from Western regulators.
BREAKING: 🇷🇺 Russian parliament has just passed a bill allowing the use of #Bitcoin and cryptocurrencies in international transactions.
While crypto is not permitted for domestic payments in Russia, this new bill signifies a significant shift in the country’s approach to digital currencies on an international level. The new law aims to strengthen Russia’s trade relationships and challenge global regulatory dynamics. Other countries have already taken similar actions, such as Venezuela, which has used crypto to bypass international sanctions.
Legalizing Crypto Mining
The Russian parliament also passed a bill to legalize cryptocurrency mining. Drafted by Deputy Anatoly Aksakov and others, the bill mandates government and Bank of Russia regulations for mining activities, with compliance monitored by a federal body. This initiative aims to legalize mining, ensure income declaration, and facilitate tax payments.
#Mining and #crypto just been legalized in #Russia. Waiting for the secondary readings and it will go live. Likely from September 1st, 2024 🔥🔥🔥
The bill seeks to reduce legal risks by allowing the sale of mined digital currencies without using Russian information infrastructure and exempting these transactions from currency regulation laws. It includes a ban on cryptocurrency advertising and, if approved, will take effect on September 1, 2024.
Impact on Crypto and U.S. Relations
The approval of this bill positions Russia in opposition to the United States’ efforts to curtail Moscow’s international trade capabilities. U.S. officials, including Treasury Secretary Janet Yellen, have closely monitored Russia’s use of crypto to evade sanctions.
“We are very attentive to the [Russian] use of cryptocurrencies and stablecoins. We don’t think it’s a very substantial thing that Russia is doing but as our sanctions bite more and more, it becomes a concern,” Yellen said recently.
As sanctions tighten, Russia’s use of crypto could concern U.S. legislators trying to tighten their grip on the country’s international trade. President Vladimir Putin, while critical of bitcoin mining’s high energy consumption, supports using crypto to mitigate the impact of international sanctions. This legislative development underscores Russia’s determination to explore alternative financial mechanisms to sustain its international trade amidst ongoing economic pressures from the West.
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